IAS 40 Flashcards
Cost model measurement?
Cost - depreciaiton
What is an investment property? (capital)
Land held for capital appreciation
What is an investment property? (undecided)
Land held for undecided future use
What is an investment property? (operating)
(Vacant) buildings leased out under an operating lease
FV model and depreciation?
No depreciation is charged, FV adjustment each year
FV model and gains and losses on revaluation?
All gains and losses on revaluation reported in SPL
Transfer between owner occupied to investment property?
FV under IAS 16, recognise rthrough OCI if gain
Transfer between investment property to owner-occupied?
Use FV under IAS 40
Transfer between inventories to investment property
Use FV under IAS 2
Transfer between investment property to inventories?
Use FV under IAS 40, changes in carrying amount recognised in SPL
When should transfer to or from IAS 16 only be done?
When there is a change in use
Where should difference at transfer date from IAS 16 to IAS 40?
As a revaluation under IAS 16. Put in revaluation surplus
What happens when a building classified under IAS 16 when it is let out to a third party?
Reclassified under IAS 40, as there was a change in usage
What happens when there is an increase in investment’s property fair value?
Difference is credit to SPL
Initial measurement of investment property?
Purchase price + directly attributable expenditure
