Owner-occupied property — Accounting glossary

IAS 16 generally applies to owner-occupied property, in contrast to IAS 40 investment property held to earn rentals or for capital appreciation. Assess how the property is actually used; mixed-use properties require the standard’s particular analysis. A transfer between owner-occupied and investment property requires evidence of a change in use, not just a change in management intention.

Worked example

A company owns a building used as its own headquarters. The building is owner-occupied and is accounted for under the applicable IAS 16 requirements, rather than as investment property solely because its value may rise.

Common mistake

Classifying an owner-occupied headquarters as investment property merely because the building has appreciated in value.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FR	Direct	September 2026–June 2027
ACCA	SBR	Direct	September 2026–June 2027