Gains and losses in Investment properties Impact on income statement

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archived_user

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Dear forum,
I have a quick doubt, If a company has changes in the fair value of its investment properties under IFRS, it will report in which part of the income statement, operating or financial?
Thanks in advance,
 
EBIT is operating income for lot of companies. In general, gains and loses from fair value adjustments of investment properties go below EBIT, which means it is not operating. Also, it would be misleading to consider those gains or loses as financial income or loss, investment properties are not financial instruments. So, the answer is none.
The IS structure would be as follow:
Revenues
Gross Profit
SG&A
Depreciation & Amortization
EBIT
Gains/loses from fair value adjustment of investment properties
Financial result, net
EBT
Net Income
 
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