Financial Reporting Faculty members get full access. Go directly to the electronic versions of the standards and any amendments.
ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.
SSAP 19 defines an investment property in such a way as to distinguish it from other property fixed assets. An investment property is an interest in land and/or buildings:
in respect of which construction work and development have been completed; and
which is held for its investment potential, any rental income being negotiated at arm’s length.
There are two exceptions to this definition:
A property owned and occupied by a company for its own purposes is not an investment property;
A property let to and occupied by another group company is not an investment property.
Investment properties should be included in the balance sheet at their open market value. The movements in market value are taken to the statement of total recognised gains and losses (investment revaluation reserve). Investment properties are not depreciated.
FRS 100 was issued in November 2012. The standard establishes rules on how to select the appropriate accounting framework for a particular entity. Depending on factors such as size and whether they are listed, UK entities will apply one of:
FRS 101 Reduced Disclosure Framework (EU-adopted IFRS, with some amendments in order to comply with the Companies Act and reduce disclosure requirements)
FRS 102 (One standard which will replace existing SSAPs, FRSs and UITF Abstracts)
A modified FRSSE
The new UK GAAP is effective for periods beginning on or after 1 January 2015, with earlier adoption permitted.