Investment Property
Investment Property
CLASSIFIED AS INVESTMENT
PROPERTY
An entity owns property that is leased to, and occupied by, its parent
or another subsidiary
Consolidated
Þ The property does not qualify as investment property in the consolidated
financial statements, because the property is owner-occupied from the
perspective of the group
Þ But, from the perspective of the entity that owns it, the property is investment Individual
property if it meets the definition of investment property
• The lessor treats the property as investment
property in its individual financial statements.
PROVISION OF ANCILLARY
SERVICES
Fair value model (e.g. IAS 40) Revaluation model (e.g. IAS 16)
• Reflect market conditions at the end of • Not clearly defined, only require
reporting period (i.e. revalued at each sufficient regular that no material
balance sheet date) different from fair value
COST MODEL
üReclassification between investment property,
owner-occupied property, and inventory shall
be made at carrying amount
üNo gain or loss shall be recognized on the
transfer
RECLASSIFIC ATION
FAIR VALUE MODEL