IAS 40 — Transfers of investment property


The IFRS Interpretations Committee received a request for clarification of the application of paragraph 57 of IAS 40 Investment Property, which provides guidance on transfers to, or from, investment properties. More specifically, the question was whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there was an evident change in use. The 2008 Annual Improvement Project extended the application of IAS 40 to investment properties under construction but no corresponding changes were made at that time to the guidance on transfers into, or out of, investment properties in paragraph 57.

The Interpretations Committee referred the matter to the IASB, and at its April 2015 meeting, the IASB tentatively agreed to amend the paragraph to reinforce the principle for transfers into, or out of, investment property in IAS 40 to specify that such a transfer should only be made when there has been a change in use of the property.


Current status of the project

This project has been completed. The IASB issued Transfers of Investment Property (Amendments to IAS 40) on 8 December 2016.


Project milestones

Date Development Comments
April 2015 Formally added to the IASB agenda
19 November 2015
ED/2015/9 Transfers of Investment Property (Proposed amendment to IAS 40) published
comments requested by 18 March 2016
8 December 2016
Transfers of Investment Property (Amendments to IAS 40) issued
effective for periods beginning on or after 1 January 2018


Correction list for hyphenation

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