The Board discussed two annual improvements projects.

Investment property under construction

The Board discussed the issue of whether investment property under construction should be within the scope of IAS 40 Investment Property instead of IAS 16 Property, Plant and Equipment.

The Board agreed that investment property should be within the scope of IAS 40 and that IAS 40 and IAS 16 should be amended to reflect this.

Contingent rents

The second issue was a recommendation from the IFRIC that the issue of whether contingent rents relating to operating leases should be recognised as incurred or amortised on a straight line basis would be most appropriately solved via the annual improvements project.

The Board discussed and agreed that contingent rents should be recognised as incurred or earned rather than on a straight line basis. IAS 17 Leases will be amended to reflect this.