IAS 40 - Investment Property

Question 1

what is investment property held for?

Answer 1

• capital appreciation

- for currently undetermined future use

Question 2

what is investment property not held for?

Answer 2

for use in production or sale purposes

Question 3

what is owner-occupied property held for?

Answer 3

for production or admin use

Question 4

what if a portion of the property is investment property and portion is not?

Answer 4

• split up if can be sold separately

- account for entire property as IP if significant part is IP

Question 5

what will the property be if there are ancilliary services?

Answer 5

if insignificant = IP
if significant (eg. hotel) = OOP

Question 6

how do we measure IP on the FV model?

Answer 6

through P/L

Question 7

when can we transfer property to and from IP?

Answer 7

• if change in use
• no longer meets IP definition
  (must be evidence thereof)

Question 8

when do we revalue to FV through OCI then transfer?

Answer 8

PPE to IP on the FV model

Question 9

when do we revalue to FV through P/L then transfer?

Answer 9

(if IP is on the FV model)
Inv to IP
IP to PPE
IP to Inventory

Question 10

what we do for transfers to/from IP using the cost model?

Answer 10

the CA at transfer will be the cost after transfer