Investment Property

Real estate held as a financial investment

amounts recognised in the income statement for: rental income from investment property. direct operating expenses (including repairs and maintenance) from investment property that generated rental income during the period. United Kingdom's Investment Property Management team provides services ranging from asset management to property management for owners, developers and investors.

ias 40 - investment property

Under IAS 40 Investment property is the accounting for property (land and/or buildings) acquired to generate rental income or for capital appreciation or both. Investment property is initially measured at acquisition costs and, with some exceptions, subsequently measured using an acquisition costs method or a market value method, with changes in market value recognised in the income statement in accordance with the market value method.

A new version of IAS 40 was issued in December 2003 and is effective for fiscal years beginning on or after January 1, 2005. Under IAS 40 Investment property is the accounting for property (land and/or buildings) acquired to generate rental income or for capital appreciation or both. Investment property is initially measured at acquisition costs and, with some exceptions, subsequently measured using an acquisition costs method or a market value method, with changes in market value recognised in the income statement in accordance with the market value method.

A new version of IAS 40 was issued in December 2003 and is applicable for fiscal years beginning on or after January 1, 2005. However, early adoption is permissible so that EU entities can apply the changes in accordance with the IASB's entry into force (July 1, 2014).

Valid for financial years beginning on or after 1 July 2018. As part of the "Annual Improvements" the IASB extended the application of IAS 40 to properties under construction or redevelopment for use as investment property in May 2008. These properties were previously within the area of application of IAS 16.

A company may make the above classifications on the property by property principle. 1 A methodology shall be applied to all investment property of an enterprise. An amendment is allowed only if it results in a more appropriate representation. This is unlikely to be the case for a transition from a fairly measured financial instrument to a financial instrument, IAS 40 states.

An enterprise that identifies the impairment of an investment property under construction as not being measurable reliably based on its current market value, but anticipates that the asset's current market value will be measurable when the construction is finished, values the investment property under construction at its acquisition costs until either its current market value becomes measurable reliably or completion of the construction is achieved.

For investment property (other than an investment property under construction), if an enterprise finds that its time value cannot be measured with certainty in the long term, it shall value the investment property using the historical cost convention in IAS 16. Investment property shall be measured at a zero salvage value.

IAS 16 shall be applied until the investment property is disposed of. To the extent that an enterprise uses the acquisition costs framework for investment property, inter-category transfers neither alter the book value of the property that has been assigned nor alter the acquisition costs of the property for valuation or disclosures in the income statement. The amount recognized in the income statement for the period in which the transfer takes place does not affect the fair value of the property:

Auch interessant

Mehr zum Thema