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IASB finalizes amendments to IAS 40 regarding transfers of investment property

  • IFRS - IASB Image

Dec 08, 2016

On December 8, 2016, the International Accounting Standards Board (IASB) published "Transfers of Investment Property (Amendments to IAS 40)" to clarify transfers of property to, or from, investment property.

The amendments in Transfers of Investment Property (Amendments to IAS 40) are:

  • Paragraph 57 has been amended to state that an entity shall transfer a property to, or from, investment property when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does not constitute evidence of a change in use.
  • The list of evidence in paragraph 57(a) – (d) was designated as non-exhaustive list of examples instead of the previous exhaustive list.

The amendments are effective for periods beginning on or after January 1, 2018. Earlier application is permitted. An entity applies the amendments to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. Retrospective application is also permitted if that is possible without the use of hindsight.

Review the press release on the IASB's website.

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