Transfer to or from investment property
Examples of evidence include commencement of owner occupation, completion of owner occupation, or commencement of development with a view to sale, as appropriate. A change in management intention alone is insufficient. The accounting depends on the direction of transfer and the entity’s investment property model; for example, a transfer from owner-occupied property to the IAS 40 fair-value model requires applying IAS 16 up to the change-of-use date.
Worked example
An owner-occupied building becomes vacant and is leased to an unrelated tenant under an operating lease. When evidence establishes the relevant change of use, the entity transfers it to investment property and applies the relevant IAS 40 model.
Common mistake
Transferring property solely because management plans to rent it, without evidence of the change in use, or applying the same remeasurement entry to every transfer direction.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |