Investment property
Investment property is property held to earn rentals, for capital appreciation or both, rather than for owner occupation, production, administration or ordinary-course sale. IAS 40 governs recognition, measurement and disclosure, including an accounting policy choice between permitted models subject to the standard’s requirements.
Worked example
A company rents an office building to an unrelated tenant; the auditor assesses its classification and the valuation or cost-model accounting applied.
Common mistake
Do not assume every investment property must use the fair value model or that all owned buildings are investment property.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |