Valuation models of Investment Property
Valuation models of Investment Property

Summary/Abstract: Investment Property (hereinafter called ІР) are real estate objects, which are used to earn profit from leasing out or capital gain. The relevant estimation of IP is important because it allows a higher quality of representing information of the financial reporting in relation to fixed assets, structures of assets and value of an enterprise as a whole, and also gives more exact information for the analysis of efficiency of the use of IP. The status of IP is considered in the first part of the article, along with a description of the objects which can be included in IP, and also an analysis of statistical data, in relation to the share of the investment real estate in the asset structure of enterprises of different types of activity. Furthermore, the models of estimation of IP are considered in accordance with IAS 40 “Investment Property” – by fair value and by historical cost, complemented with their comparative description, and conclusions are made in relation to the expedience of the application of these models in certain economic conditions.

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