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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.


  • 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).

Which version of the standard?

'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.

Annual period starts
Effective version of standard
Notes on amendments 
On or after 1 January 2021 IAS 40 2019 Issued Standards
Includes amendments 1 - 4
1 January 2019 – 31 December 2020
IAS 40 2020 Required Standards
Includes amendments 1 - 3
I January 2018 – 31 December 2018
IAS 40 2018 Required Standards
Includes amendments 1 and 3
1 January 2017 – 31 December 2017
IAS 40 2017 Required Standards
Does not include the amendments

Required Standards book for a particular year assumes that there is no early application of issued but not yet effective IFRSs; The Issued Standards book assumes early application of all issued IFRSs.

For the latest version of the standard, and where the amendments are to be adopted early, refer to IAS 40 2019 Issued Standards.

Recent amendments

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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).

Other resources

This page was last updated 30 January 2020