Page 8 - 5. COMPILER QB - INDAS 40
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(in crore)
PPE (70%) Investment property (30%) Total
Land (25%) Building (75%)
Cost 1.75 5.25 3 10
FV 2.625 7.875 4.5 15
Valuation model followed Cost Cost Cost
Value recognized in the books 1.75 5.25 3
Less: Depreciation Nil (5.25/50) = (3/50) = 0.06
0.105 crore
Carrying value as on 31st March, 1.75 5.145 2.94
2018
Impairment loss No impairment loss since fair value is more than the cost
Note- Do not get confused over here.
Ind AS 40 will classify an asset. Ind AS 116 will do the recognition and accounting for that asset
after it is classified as a leasehold property according to Ind AS 40.
5. 7