medium · CFA Level I alts

Harbourlight REIT owns a portfolio of apartment buildings. It reports Net Operating Income (NOI) using IFRS. If the REIT chooses the 'Fair Value' model for its investment property, changes in the property's value are reported:

  1. Directly on the Income Statement as part of profit or loss.
  2. Only in the footnotes, as the balance sheet must remain at historical cost.
  3. In Other Comprehensive Income (OCI) until the property is sold.

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