IAS 40 Investment Property.docx

1、IAS 40 Investment PropertyIAS 40 Investment PropertyThis revised Standard supersedes IAS 40 (2000) Investment Property and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.ContentsparagraphsINTRODUCTIONIN1-IN18International Accounting Stand

2、ard 40 Investment PropertyOBJECTIVE1SCOPE2-4DEFINITIONS5-15RECOGNITION16-19MEASUREMENT AT RECOGNITION20-29MEASUREMENT AFTER RECOGNITION30-56Accounting Policy30-32Fair Value Model33-55Inability to Determine Fair Value Reliably53-55Cost Model56TRANSFERS57-65DISPOSALS66-73DISCLOSURE74-79Fair Value Mode

3、l and Cost Model74-75Fair Value Model76-78Cost Model79TRANSITIONAL PROVISIONS80-84Fair Value Model80-82Cost Model83-84EFFECTIVE DATE85WITHDRAWAL OF IAS 40 (2000)86APPROVAL OF IAS 40 BY THE BOARDIASB BASIS FOR CONCLUSIONS ON IAS 40 (as revised in 2003)IASC BASIS FOR CONCLUSIONS ON IAS 40 (2000)TABLE

4、OF CONCORDANCEInternational Accounting Standard 40 Investment Property (IAS 40)is set out in paragraphs 1-86. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 40 should be read in the context of its objective and the IASBs Basis

5、for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the abs

6、ence of explicit guidance.IntroductionIN1. International Accounting Standard 40 Investment Property (IAS 40) replaces IAS 40 Investment Property (issued in 2000), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged.Reasons for Revising IAS

7、 40IN2. The International Accounting Standards Board developed this revised IAS 40 as part of its project on Improvements to International Accounting Standards. The project was undertaken in the light of queries and criticisms raised in relation to the Standards by securities regulators, professiona

8、l accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements.IN3. For IAS 40 the Boards main objective was a limited revision to

9、 permit a property interest held by a lessee under an operating lease to qualify as investment property under specified conditions. Those conditions include requirements that the property must otherwise meet the definition of an investment property, and that the lessee must account for the lease as

10、if it were a finance lease and measure the resulting lease asset using the fair value model. The Board did not reconsider the fundamental approach to the accounting for investment property contained in IAS 40.The Main ChangesIN4. The main changes from the previous version of IAS 40 are described bel

11、ow.IN5. A property interest that is held by a lessee under an operating lease may be classified and accounted for as investment property provided that:(a) the rest of the definition of investment property is met;(b) the operating lease is accounted for as if it were a finance lease in accordance wit

12、h IAS 17 Leases; and(c) the lessee uses the fair value model set out in this Standard for the asset recognised.IN6. The classification alternative described in paragraph IN5 is available on a property-by-property basis. However, because it is a general requirement of the Standard that all investment

13、 property should be consistently accounted for using the fair value or cost model, once this alternative is selected for one such property, all property classified as investment property is to be accounted for consistently on a fair value basis.IN7. The Standard requires an entity to disclose:(a) wh

14、ether it applies the fair value model or the cost model; and(b) if it applies the fair value model, whether, and in what circumstances, property interests held under operating leases are classified and accounted for as investment property.IN8. When a valuation obtained for investment property is adj

15、usted significantly for the purpose of the financial statements, a reconciliation is required between the valuation obtained and the valuation included in the financial statements.IN9. The Standard clarifies that if a property interest held under a lease is classified as investment property, the ite

16、m accounted for at fair value is that interest and not the underlying property.IN10. Comparative information is required for all disclosures.IN11. Some significant changes have been incorporated into the Standard as a result of amendments that the Board made to IAS 16 Property, Plant and Equipment a

17、s part of the Improvements project:(a) to specify what costs are included in the cost of investment property and when replaced items should be derecognised;(b) to specify when exchange transactions (ie transactions in which investment property is acquired in exchange for non-monetary assets, in whol

18、e or in part) have commercial substance and how such transactions, with or without commercial substance, are accounted for; and(c) to specify the accounting for compensation from third parties for investment property that was impaired, lost or given up.Summary of the Approach Required by the Standar

19、dIN12. The Standard permits entities to choose either:(a) a fair value model, under which an investment property is measured, after initial measurement, at fair value with changes in fair value recognised in profit or loss; or(b) a cost model. The cost model is specified in IAS16 and requires an inv

20、estment property to be measured after initial measurement at depreciated cost (less any accumulated impairment losses). An entity that chooses the cost model discloses the fair value of its investment property.IN13. The choice between the cost and fair value models is not available to a lessee accou

21、nting for a property interest held under an operating lease that it has elected to classify and account for as investment property. The Standard requires such investment property to be measured using the fair value model.IN14. The fair value model differs from the revaluation model that is permitted

22、 for some non-financial assets. Under the revaluation model, increases in carrying amount above a cost-based measure are recognised as revaluation surplus. However, under the fair value model, all changes in fair value are recognised in profit or loss.IN15. The Standard requires an entity to apply i

23、ts chosen model to all of its investment property. However, this does not mean that all eligible operating leases must be classified as investment properties.IN16. In exceptional cases, when an entity has adopted the fair value model, there may be clear evidence when an entity first acquires an inve

24、stment property (or when an existing property first becomes investment property following the completion of construction or development, or after a change in use) that its fair value will not be reliably determinable on a continuing basis. In such cases, the Standard requires the entity to measure t

25、hat investment property using the cost model in IAS16 until disposal of the investment property. The residual value of the investment property is assumed to be zero.IN17. A change from one model to the other is made only if the change results in a more appropriate presentation. The Standard states t

26、hat this is highly unlikely to be the case for a change from the fair value model to the cost model.IN18. IAS 40 depends upon IAS 17 for requirements for the classification of leases, the accounting for finance and operating leases and for some of the disclosures relevant to leased investment proper

27、ties. When a property interest held under an operating lease is classified and accounted for as an investment property, IAS 40 overrides IAS 17 by requiring that the lease is accounted for as if it were a finance lease. Paragraphs 14-18 of IAS 17 apply to the classification of leases of land and bui

28、ldings. In particular, paragraph 18 specifies when it is not necessary to measure separately the land and building elements of such a lease.Objective1. The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.Scope2. This Sta

29、ndard shall be applied in the recognition, measurement and disclosure of investment property.3. Among other things, this Standard applies to the measurement in a lessees financial statements of investment property interests held under a lease accounted for as a finance lease and to the measurement i

30、n a lessors financial statements of investment property provided to a lessee under an operating lease. This Standard does not deal with matters covered in IAS 17 Leases, including:(a) classification of leases as finance leases or operating leases;(b) recognition of lease income from investment prope

31、rty (see also IAS 18 Revenue);(c) measurement in a lessees financial statements of property interests held under a lease accounted for as an operating lease;(d) measurement in a lessors financial statements of its net investment in a finance lease;(e) accounting for sale and leaseback transactions;

32、and(f) disclosure about finance leases and operating leases.4. This Standard does not apply to:(a) biological assets related to agricultural activity (see IAS 41 Agriculture); and(b) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources.Definitions5. The following terms are used in this Standard with the meanings specified:Carrying amount is the amount at which an asset is recognised in the balance s