Identify whether IAS 40 applies to the following items. In other words, are they investment properties? While there is some amount of judgment depending on the circumstances, consider the most plausible scenario.
a. A residential apartment building owned by an apartment rental company.
b. A building owned and used by a hotel operator as a hotel.
c. A building owned by Company A and rented to Company B, which operates a hotel in the building.
d. Land on which a company’s production facilities is situated.
e. An empty parcel of land adjacent to a company’s production facilities.