IAS 40 (Transfers)

Question 1

When should transfers only need to be done?

Answer 1

Only be made when there is a change in use

Question 2

An example of transfers?

Answer 2

Owner occupation commences so investment property is now treated under IAS 16

Question 3

Investment property to PPE? (Cost representation)

Answer 3

Cost of subsequent accounting is fair value at date of change of use

Question 4

Investment property to PPE? (Apply)

Answer 4

IAS 16 or IAS 2 as appropriate after date of change of use

Question 5

PPE to investment property? (before date of change)

Answer 5

Apply IAS 16 up to date of change of use

Question 6

PPE to investment property? (at date of change fair value)

Answer 6

Property revalued to fair value

Question 7

PPE to investment property? (at date of change carrying amonut fair value)

Answer 7

Any difference between carrying amonut under IAS 16 and its fair value is treated as revaluation under IAS 16

Question 8

How is a decrease in fair value recognised in financial statements?

Answer 8

In the statement of profit or loss