Facts
XYZ Inc. and its subsidiaries have provided you, their International Financial Reporting Standards (IFRS) specialist, with a list of the properties they own:
(a) Land held by XYZ Inc. for undetermined future use
(b) A vacant building owned by XYZ Inc. and to be leased out under an operating lease
(c) Property held by a subsidiary of XYZ Inc., a real estate firm, in the ordinary course of its business
(d) Property held by XYZ Inc. for the use in production
(e) A hotel owned by ABC Inc., a subsidiary of XYZ Inc., and for which ABC Inc. provides security services for its guests’ belongings
Required
Advise XYZ Inc. and its subsidiaries as to which of the above mentioned properties would qualify under IAS 40 as investment properties. If they do not qualify thus, how should they be treated under IFRS?