Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition

Chapter 30

INVESTMENT PROPERTY (IAS 40)

BACKGROUND AND INTRODUCTION

This Standard prescribes criteria for the accounting treatment for, and disclosures relating to, investment property.

The Standard shall be applied in the recognition, measurement, and disclosure of investment property.

The Standard applies to the measurement in a lessee’s financial statements of investment property held under a finance lease and to the measurement in the lessor’s financial statements of investment property leased out under an operating lease. However, all other aspects relating to leases, their accounting, and their disclosure, are dealt with in IAS 17, Leases. Additionally, the Standard does not deal with biological assets related to agricultural activity (see IAS 41) or to mineral rights and mineral reserves such as oil, natural gas, and similar nonregenerative resources (see IFRS 6).

DEFINITIONS OF KEY TERMS

(In accordance with IAS 40)

 

Investment property. Land or building, or part of a building, or both, held by the owner or the lessee under a finance lease to earn rentals and/or for capital appreciation, rather than for use in production or supply of goods and services or for administrative purposes or for sale in the ordinary course of business.

Owner-occupied property. Property held by the owner or the lessee under a finance lease for use in production or supply of goods and services or for administrative purposes.

INVESTMENT PROPERTY

Property interests held by a lessee under an ...