Subject is financial reporting (Answer is require on immegiate basis)

Q.No.4: Heels Footwear (pvt.) Limited is engaged in serving its customers through a strong retail network comprising of many retail outlets across the different cities of the country. During the financial year ended June 30, 2019, the company owned a building that it used as its corporate office. The company measures the building at cost model. The company vacated the building on July 01,2018, on this date, the building had the carrying amount of Rs. 125 million and fair value of Rs. 150 million.

The board of directors of the company decided to hold the building to be used in operating lease in order to take benefit from the increase in property prices and to measure the investment properties at fair value. On June 30, 2019, the building had a fair value of Rs. 156.25 million. (Marks 04)

Required:

Discuss the accounting treatment of the building in the financial statements of Heels Footwear (pvt.) Limited as per IAS 40, Investment Property, for the financial year ended June 30, 2019.