Accounting Requirements - IAS 40 Investment Properties

IAS 40 prescribes the accounting treatment about investment property and related disclosure necessities.

 Investment property is initially identified at price. Subsequent about initial recognition, investment assets is carried either on:

1. Cost, less accumulated depreciation and any accumulated impairment damage, as prescribed through IAS 16 Property and Equipment and Plant, or
2. Fair Value. Fair price is the price on that the property could be exchanged among knowledgeable, willing parties in such an arm's length transaction.

Movements in fair price are recognized immediately in loss or profit.

The measurement model is applied consistently to all investment property. Conversely, an entity may choose either the fair price model or the cost model for investment property backing liabilities such pay a return linked indirectly to the fair price of specified assets involving that investment property, regardless of the model selected for all another investment property.

Transfers to, or from, the investment property categorization are made merely whenever there is evidence of a change in utilize. The gain or loss on de-recognition of an item of investment property is the difference among the total disposal proceeds, whether any the carrying amount of the item. The loss or gain is included in loss or profit.