IAS 4 INVESTMENT PROPERTY

-
 IAS -40 INVESTMENT PROPERTY
EARNING RENTALS & CAPITAL APPRECIATION

Investment Property is a land or

buildings held to earn rentals or for capital Growth or both .

SCOPE / APPLICATION APPLICABLE ACCOUNTING STANDARD

Drop erty bought for routine resale IAS -

2

business ( Occupied
C°nstmctionofpropertyforzrdpayyPNPhtJtIAS-l6#E
Property bought for use in
owner

) IFRS -15 ( Revenue .

construction of
Property for future
0.w.n.IE?Pied IAS -16 (during
Construction )
use ( s.e.tfco.nstr.uctiou.as.net as well .

(
construction of during
Building for the future 1^7=40 construction
)
investment
property as well

Land bought but no use

yet decided by IAS -40
management 1

Dual Use .

using:# MixsiÉ
IAS -16 .

Rented
Eat
 1

( Universal criteria )
-
-
-

IAS-40
. - -
. . .
-
.

WH
Is 1=1
[ > is same ASIAS-16
- . - - - - - .

I
cost Nlodel
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dep.IM .

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 Changing Model

Cost Model F. V Model

Yes Allowed If that Increases Relevance Reliability and presentation of FS

→
.

change ,
.

→ IAS -40 states that it is

Highly unlikely that a
change from F- V Model to cost
Model will Increase Relevance .

→ consolidation Tissue

S.co
→
If P.co Rents its
building to
-

Indi #
P.ci?y-gronppointfviewBEfIas-#.
?fG_ property
occupied
↳This
owner
is
_- IAS-16

Case # I .co Rents its

Building to S.co .

• In lndiviwal Book Of Parent Co → 1 AS -40 applies

• In lndiviual Books of subsidiary & In Group → 1ns -16 applies ( Because if we look at this on
group level , then this asset is
being
used
by subsidiary in its business
,
therefore IAS -
I 6)
Case #2 If Parent Co selling asset to
is an
subsidiary
.

•
This sale will not actually be a sale because asset is
being sold inside the
group .

in lndiuiual Book Parent co applies

Therefore in this case
of → IFRS -5 .
• .

•
In lndiviual Books of subsidiary & In Group → 1 As 16 applies ( since the asset is
being sold , therefore 1 As -16 will
apply with

depreciation which wasn't booked under IFRS -

5 will now be booked) .
Changeinhse :

*
IfcostModdisused_inIA40
↳Then shift the
carrying
values
simply in use to
of change
atte date
propertyIAS
of other .

doctor .
IAS -40 lostModel .

HEIs 3msec
2023 .

life
-10ps
-

= .
 Case #2 If Fair Value Model is used in INS -40 IAS-16
Cost-10.00
.
to IAS -40 .

I☒-16 .

•*-

%FF.im-FYF.changew.a.be#FwpfopY--atxe
Affan 317sec
"" ""

life-10 Yrs .

date of in use IAS -16 and

it
"

using No -

Éutiu
i

then shift to As -40,

-

i
- -

depreciation
from now -
onwards .

%EE.ifyYra.ae?eFIp-roF-igatae
date of
change
in Use
Using IAS -40 and then
shift it to IAS -16 .
From Now onwards
-

compute
the Remaly life
of Asset for Future depreciation .
qq.pro .

Ins-40 " Model) :

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