Financial Reporting
IAS 40 and Investment Property Explained: Should a £350,000 Rental Property Be Measured at Cost or Fair Value?
Owning a rental flat or warehouse through your company means choosing between two accounting models under IAS 40 that can produce wildly different profit figures. This article unpacks the cost model versus the fair value model with a real £350,000 worked example, showing exactly how valuation swings hit your balance sheet, your profit and loss account, and your corporation tax computation.