The initial recognition of investment properties is based on the purchase price including the transaction costs. The carrying amount of an asset includes costs of the replacement of a component of an investment property on the date of its incurrence, provided that the applicable recognition criteria have been met, and does not include the costs related to the current maintenance of these properties. After the initial recognition, investment properties are recognised at their fair value. Gains and losses resulting from the changes of the fair value of investment properties are recognised in the income statement in the period in which they occurred.
Investment properties are derecognised from the balance sheet in the event of their disposal or a permanent withdrawal of a given investment property from use, if no future benefits resulting from the sale are expected. All gains or losses resulting from the derecognition of an investment property from the balance sheet are recognised in the income statement in the period of such a derecognition.
Assets are transferred to investment properties only if a change of their utilisation method takes place, which must be confirmed with the termination of the proprietor’s use of a given asset or conclusion of an operating lease.
If an asset is utilised by the Group, it becomes an investment property and the Group applies the principles specified in the part ‘Property, plant and equipment’ until the day of changing the manner of the property utilisation. In the event of transferring assets from inventories to investment properties, the difference between the fair value of the property as of the transfer date and its previous carrying amount is recognised in the income statement. In the event of a transfer of investment properties to the assets utilised by the proprietor or to inventories, the alleged cost of such an asset assumed for the disclosure in another category equals the fair value of the property determined as at the date of the change of its utilisation.
