QUESTION 11 (IAS 40) (a) The recognition, measurement and disclosure of an Investment Property in accordance with IAS 40: Investment Property appears straight forward. However, this could get complicated when measured either under the fair value model or under the revaluation model. Required: i) Define Investment Property under IAS 40 and explain the rationale behind its accounting treatment. ii) Explain how the treatment of an investment property carried under the fair value model differs from an owner-occupied property carried under the revaluation model. (b) Kumeri Ltd (Kumeri) is a real estate company which reports under International Financial Reporting Standards (IFRSs). The Office Building of Kumeri had a net carrying amount of GH18 million at the beginning of the financial year 1 January 2019. The property was held under the cost model. As its residual value was estimated at more than its cost due to a buoyant property market, no depreciation had been charged. As part of a relocation of the company's business, the property became vacant and was leased out to a third party on 1 April 2019 (under a six-month short lease). At the time the property was leased out, its fair value was GH22 million. At the end of the lease, the company decided to transfer the property to its inventories of properties for sale in the ordinary course of its business. At that date the value of the property was GH21 million. The property was sold in December 2019 for GH21.3 million. The company uses the fair value model for its investment property. Required: Determine the amounts to be recognised in profit or loss and in other comprehensive income in respect of the property for the year ended 31 December 2019.