A practical guide to amended IAS 40

IFRS updates ()

Accounting for investment properties under construction

This publication addresses the questions arising when applying the amended IAS 40, ‘Investment property’.

The amended standard, published in May 2008, revised the scope and introduced new requirements for accounting for properties under construction or development for future use as investment properties. It applies prospectively for annual periods beginning on or after 1 January 2009, with early adoption permitted from before 1 January 2009 (provided the fair values of investment properties under construction were determined at the adoption date).

This 12-page guidance in question and answer format, looks at the scope and transition requirements, measurement provisions, recognition of fair value gains and losses, impairment of investment properties and provisions for onerous contracts, disclosure and other issues. It is available in PDF format only.

Previous issues of IFRS updates

Jan 2011 The implications of lease accounting for real estate
Jul 2010 The overhaul of IFRS lease accounting: Catalyst for change in corporate real estate
Apr 2010 IFRS Bulletin ED10 Consolidated Financial Statements
Mar 2010 IFRS Practical Guide Accounting Properties Under Construction
Feb 2010 IFRS and Luxembourg GAAP: Similarities and differences
Feb 2010 IFRS Bulletin Financial Instruments: Classification and Measurement
Jan 2010 A practical guide to IFRS 8 for real estate entities
Aug 2009 A practical guide to amended IAS 40
Jan 2009 Similarities and differences 2009