IAS-40 – Investment Property :

Investment property shall be recognized as an asset when it is probable that the future economic benefits that are associated with the investment property will flow to the entity, and the cost of investment property can be measured reliably. An investment property shall be measured initially at its cost. Transaction cost shall also be included in the initial measurement.

For accounting purpose an enterprise must choose either:

(i) a fair value model: Investment property should be measured at fair value and changes in fair value should be recognised in the income statement; or

(ii) a cost model: Investment property should be measured at depreciated cost (less any accumulated impairment losses).

An investment property shall be derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal.