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Millie & Merrill Holding Company owns a portfolio of three investment properties heid as right-of-use assets. During the year, the company decides to change from
Millie \& Merrill Holding Company owns a portfolio of three investment properties heid as right-of-use assets. During the year, the company decides to change from a fair value measurement model to a cost model in order to save valuation costs. The financial controller, Mickey Merrill, asks you about the appropriate accounting policy on the measurement model. Which of the following statement is true? Select the best response, and then click Submit. A cost model must be used for investment property held as right-of-use assets. Investment property is held to earn rentals or for capital appreciation but not both. IAS 40 states that it is highly unlikely that a change from the fair value model to the cost model will result in a more relevant presentation. Millie \& Merrill may choose to change its accounting policy for the measurement model of its investment properties as long as this policy is consistently applied to all properties
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