单选题

A company that prepares its financial statements according to IFRS owns several investment properties on which it earns rental income. It values the properties using the fair value model basedon prevailing rental markets. After two years of increases, the market softened in 2014 and valuesdecreased. A summary of the properties' valuations follows:

A、 €6.5 million charge to net income
B、 €6.5 million charge to revaluation surplus
C、 €4.5 million charge to revaluation surplus and €2.0 million charge to net income

【正确答案】 A

【答案解析】

For investment properties, when using the fair value model of valuing assets (as opposed to the revaluation model, which is not allowed by IFRS for investment properties), all increases and decreases affect net income.