6. Investment property
Investment property is property (land or a building, or part of a building, or both) held by the Group (acting as the owner or the lessee under a finance lease) to earn rentals or for capital appreciation or both. At the same time, such a real property is:
- occupied by the Group only to a small extent,
- it is not for sale as part of the regular operations of the Group.
Therefore, an investment property generates cash flows largely independent of the other assets held by the Group.
An investment property is measured initially at its cost (purchase price and any directly attributable expenditure). After the initial entry, investment property assets are measured in accordance with requirements of the fair value model. A gain or loss arising from a change in the fair value of investment property is recognised in the profit and loss account for the period in which it arises. The fair value of investment property reflects market conditions at the balance sheet date.