There is not enough information to make a determination. To decide whether the Gohar Tower is an investment property under IAS 40, an item of property, plant, and equipment under IAS 16, or an item of inventory under IAS 2, we would need details on how the asset is used and managed by Contrado Limited. IAS 40 defines investment property as property held to generate rental income, while IAS 16 covers property, plant, and equipment used in the production or delivery of goods or services, or held for rental to third parties or for administrative purposes. IAS 2 refers to inventory held for sale in the ordinary course of business. Without specific information on the intended use of the Gohar Tower, it's impossible to classify it under any of these standards without more context.
Determining Gohar Tower's Classification: Investment Property, PPE, or Inventory?
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.
It is an investment property.
There is not enough information to make a determination
This is an item of inventory
This is an item of property, plant and equipment
