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IAS 40-INVESTMENT PROPERTY - Coggle Diagram
IAS 40-INVESTMENT
PROPERTY
Definition
property (land or a building—or part of a building—or both)
held by the owner or by the lessee under a finance lease
purposes
earn rentals
capital appreciation
both
Distinguish from Owner-occupied property
property
held by the owner or by the lessee under a finance lease)
purposes
production
supply of goods/services
administrative
recognized as PPE
Recognized as asset if
future economic benefits
cost can be measured reliably
Measurement
Initial measurement
be measured initially at its cost
Transaction costs included in the initial measurements
Subsequent measurement
Cost Model
Accordance with IAS 16’s
requirements
Fair Value Model
No depreciation
Gain/ loss from a change in fair value in P/L in the period
Fair value reflect market conditions at BS date
if previously measured at fair value, continue to measure the property at fair value until disposal
Transfer
Held for sale
Commencement
Owner-occupation
Development with a view to sale
Operating lease to another party
End
Owner-occupation
Construction or development
Disposal
Gains or losses
Carrying amount
Net disposal proceeds
Recognised in P/L