Flight Centre Ltd’s 2017 financial report notes that PPE is carried at cost less accumulated depreciation and any impairment charges. The notes to the accounts (pp. 48 and 81) note a gain on the sale of the NZ Head Office in 2016 of $6264000. The head office had a carrying amount of $10186000 in the statement of financial position prior to disposal.

Required

Discuss the usefulness of measuring assets such as property and buildings at cost less accumulated depreciation and any impairment charges. Explain why an entity may elect to measure property at cost in the statement of financial position and disclose its fair value.