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IAS 40 Investment Property

IAS 40 Investment Property prescribes the accounting treatment for investment property and related disclosure requirements. Revised December 2003. Effective 1 January 2005.

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*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).

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*Not UK endorsed as at 4 February 2022. Read more on UK endorsement of IFRS standards. Endorsed for use in the EU as at 4 February 2022. Read more on EU endorsement of IFRS standards

UK reduced disclosures

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

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

Disclosure exemptions

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 4 February 2022.