INVESTMENT

PROPERTY
Investment Property
-PROPERTY (LAND OR A BUILDING -
OR PART OF A BUILDING - OR BOTH)
HELD TO EARN RENTALS OR FOR
CAPITAL APPRECIATION OR BOTH
Examples of Investment Property
LAND HELD FOR LONG-TERM CAPITAL
APPRECIATION;

LAND HELD FOR CURRENTLY

UNDETERMINED FUTURE USE
Examples of Investment Property
A BUILDING OWNED (OR HELD BY THE
LGU UNDER A FINANCE LEASE) AND
LEASED OUT UNDER ONE OR MORE
OPERATING LEASES ON A COMMERCIAL
BASIS
Examples of Investment Property
A BUILDING THAT IS VACANT BUT IS
HELD TO BE LEASED OUT UNDER
ONE OR MORE OPERATING LEASES
ON A COMMERCIAL BASIS
Examples of Investment Property
PROPERTY THAT IS BEING
CONSTRUCTED OR DEVELOPED
FOR FUTURE USE AS INVESTMENT
PROPERTY
BIOLOGICAL ASSETS
RELATED TO AGRICULTURAL
ACTIVITY
MINERAL RIGHTS AND
MINERAL RESERVES
PROPERTY BEING
CONSTRUCTED OR
DEVELOPED
PROPERTY BEING
CONSTRUCTED OR
DEVELOPED ON BEHALF OF
THIRD PARTIES
OWNER-OCCUPIED PROPERTY OR
PROPERTY HELD FOR USE IN THE
PRODUCTION OR SUPPLY OF
GOODS AND SERVICES OR FOR
ADMINISTRATIVE PURPOSES
PROPERTY THAT IS LEASED TO
ANOTHER LGU UNDER A FINANCE
LEASE
PROPERTY HELD TO PROVIDE A
SOCIAL SERVICE AND WHICH ALSO
GENERATES CASH INFLOWS
PROPERTY HHELD FOR
STRATEGIC PURPOSES
Criteria for Recognition
Economic Service
benefit potential
Criteria for Recognition
Measurement at Initial Recognition
Non-
Exchange
exchange
• At COST • Fair value at
the date of
acquisition
Measurement at Initial Recognition

Purchase Transfer Other

Legal fees COST
price tax costs
Measurement at Reporting Date

Carrying Cost = Cost – (AD + AIL)

Transfer to / from
Investment Property
a. Commencement of owner – occupation
b. Commencement of development with a view
to sell
c. End ow owner-occupation
d. Commencement of an operation lease (on a
commercial basis)
Transfer to / from
Investment Property
a. Commencement of owner – occupation