IAS 40 Investment Property

Hi Conty !

Investment properties are dealth with under IAS 40. Here are some extracts of the standard:

Definition of Investment Property

Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both. [IAS 40.5]

Examples of investment property: [IAS 40.8]

* land held for long-term capital appreciation
* land held for undetermined future use
* building leased out under an operating lease
* vacant building held to be leased out under an operating lease
* property that is being constructed or developed for future use as investment property

The following are not investment property and, therefore, are outside the scope of IAS 40: [IAS 40.5 and 40.9]

* property held for use in the production or supply of goods or services or for administrative purposes
* property held for sale in the ordinary course of business or in the process of construction of development for such sale (IAS 2 Inventories)
* property being constructed or developed on behalf of third parties (IAS 11 Construction Contracts)
* owner-occupied property (IAS 16 Property, Plant and Equipment), including property held for future use as owner-occupied property, property held for future development and subsequent use as owner-occupied property, property occupied by employees and owner-occupied property awaiting disposal
* property leased to another entity under a finance lease

HTH