IAS 40 Investment Property

*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

Synopsis

• IAS 40 permits entities to choose either a fair value model or cost model when accounting for investment properties.
• The chosen model must be applied to all investment properties held by an entity.
• Under the fair value model, investment properties are measured at fair value, with any changes recognised in profit or loss.
• Under the cost model, properties are measured at depreciated cost (although fair value must also be disclosed).

• Read the unaccompanied version of IAS 40

The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

Which version of the standard?

Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.

Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.

Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

UK reduced disclosures – FRS 101

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.

Amendments to the standard for FRS 101 preparers

There are no amendments to the standard in order to comply with the Companies Act and related Regulations.

Disclosure exemptions for FRS 101 preparers

FRS 101 paragraph 8(f) states that a qualifying entity is exempt from the requirement to provide a reconciliation between the carrying amounts of investment property at the beginning and end of the comparative period. This exemption is applicable whether investment property is carried under the cost or fair value model.

IAS 40 paragraphs for which exemption is available: 76 and 79(d) (comparative periods only). 

This page was last updated 30 August 2022.