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    Question

    Which of the following methods should be used by an

    enterprise holding investment properties to value Investment property , a s per AS 10 (Revised) ‘Property, Plant and Equipment’ ?  
    A As per fair value Correct Answer Incorrect Answer
    B Under discounted cash flow model Correct Answer Incorrect Answer
    C Under cost model Correct Answer Incorrect Answer
    D Under cash flow model Correct Answer Incorrect Answer
    E Any of the above, but to be disclosed in the notes to accounts Correct Answer Incorrect Answer

    Solution

    Explanation :   
    Under AS 10 (Revised) in India, investment property must be measured using the cost model , even though its fair value must be disclosed in the notes. This differs from Ind AS 40 , where entities have the option to use fair value ( disclosed but not used for measurement in AS). 

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