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IASB proposes amendments to IAS 40 on transfers of investment property

  • IASB document Image

Nov 19, 2015

The IASB has published an exposure draft (ED) that would amend IAS 40, “Investment Property,” to clarify its guidance on transfers of investment property.

Specifically, the proposed amendments would:

  • Revise paragraph 57 of IAS 40 to indicate that a property should be transferred to or from in­vest­ment property when there is evidence of a change in use that would cause the property to meet, or cease to meet, the de­f­i­n­i­tion of in­vest­ment property.
  • Present the examples of evidence in paragraph 57(a)–(d) as a nonex­haus­tive, rather than an exhaustive, list.

Although the ED does not propose an effective date, it indicates that the amendments would be applied ret­ro­spec­tively and that early ap­pli­ca­tion would be permitted.

Comments on the ED are due by March 18, 2016. For more information, see the press release and ED on the IASB’s Web site. In addition, see Deloitte's IFRS in Focus newsletter and the IAS Plus project page on transfers of investment property under IAS 40.

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