bolligerallstar

I think you’re mixing the treatment of land held for sale with property being constructed .
Only remember this vaguely. Usually, investment property is carried at historical cost for GAAP companies. However, neither GAAP nor IFRS dictate how this entity gets reported. You’d continue to show depreciation as usual. IFRS allows fair valuation, too.
If you’re in the business of constructing properties, then any building materials and “finished goods” would be carried as inventory. When you sell the property, you expense it under COGS.
Not sure about that formula you posted… too tired to decipher it. Superficially, it looks wrong.