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Investment Property PDF
Investment Property PDF
Investment Property PDF
BLUE NOTES
14 S
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Investment Property Owner Occupied
Property (land or building, or part of a building, or Property
both) Held by an owner or by the lessee
Held by an owner or by the lessee under a finance For use in the production or supply of goods or
lease services or for administrative purposes.
To earn rentals or for capital appreciation or both.
building that is vacant but is held to be leased property occupied by the employees whether
out under one or more operating lease or not the employees pay rent at market rate
property that is being constructed or property held for sale in the ordinary course
developed for future use as an investment of business or in the process of construction
property. or development for such sale
owner occupied property awaiting disposal
property being constructed or developed in
behalf of third parties
property that is leased to another entity
under a finance lease
Measurement
A. Initial Measurement
At COST
If payment for an investment property is deferred:
COST = Cash price equivalent
Cost shall comprise:
Purchase Price
Directly attributable expenditures (i.e. professional fees for legal services, property taxes, and
other transaction costs)
Cost shall exclude:
Start-up costs, unless necessary in bringing the property to its working condition
Initial operating losses before the investment property achieves the planned level of occupancy
Abnormal amounts of wasted material, labor, and other resources incurred in constructing, or
developing the product.
B. Subsequent Measurement
Either:
Other Considerations
A. Mixed Use of Property
Investment Owner
Case
Property Occupied
The portions could be sold separately
The portions could not be sold separately:
The ancillary services provided are
significant component of the
arrangement
The ancillary services provided are
insignificant component of the
arrangement
Disclosures
A. General Disclosures
Whether the entity uses the cost or fair value model.
The amount of rental income and related expense for the period.
Restrictions on the investment property either through rentals or sale proceeds.
Contractual obligation to purchase or construct investment property.
B. Fair Value Model Disclosures
Detailed reconciliation, showing all movement in the carrying amount of the asset.
The method in determining fair value, and whether the valuation is carried out by an independent
qualified valuer.
Net gains or losses from the fair value adjustments.
Whether significant fixtures have been separately recognized within the investment property.
C. Cost Model Disclosures
Depreciation method or rate and useful life.
Detailed reconciliation of the gross cost of investment property and related accumulated depreciation.
Fair value of the investment property if possible, if not, such shall be explained.