IAS 40 Investment Property

ACCA P2 考试： IAS 40 Investment Property

Recognition

Investment property is recognised as an asset when:

it is probable that the future economic benefits that are attributable to the investment property will flow to the entity; and

the cost of the investment property can be measured reliably.

Initial Measurement

An investment property is measured initially at its cost, which is the fair value of the consideration given for it, which includes any transaction costs.

Subsequent Measurement

Cost Model

After initial recognition, an entity that chooses the cost model shall measure all of its investment property using the cost model in IAS 16 Property, Plant and Equipment (i.e. at cost less any accumulated depreciation and impairment losses).

An investment property, measured under the cost model, that is subsequently classified as held for sale in accordance with IFRS 5 is measured in accordance with that standard.

Fair Value Model

IAS 40 prescribes when to use fair value but IFRS 13 Fair Value Measurement defines fair value and identifies how to measure fair value.

After initial recognition, an entity that chooses the fair value model must measure all of investment properties at fair value (except in exceptional circumstances).

A gain or loss arising from a change in the fair value of investment property shall be included in profit or loss for the period in which it arises.