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Determining Asset Classification: Investment Property vs. PPE in IAS 40 & IAS 16
Contrado Limited, which has diverse activities, owns the Gohar Tower in Karachi, which is the group’s head office. Decide whether the tower falls within the definition of an investment property under IAS 40, an item of property, plant and equipment under IAS 16, or an item of inventory under IAS 2. There is not enough information to make a determination This is an item of property, plant and equipment This is an item of inventory It is an investment property.

It is an investment property.