PAS 40 – Investment Property

Investment property are those ;

  • for earning rentals.
  • for capital appreciation.


  • Owner occupied – cannot be separated – insignificant.
  • Undetermined use.
  • Building Lease out as operating lease.
  • Constructed or developed used as an investment.
  • Existing investment redeveloped even during construction.

Investment property as Inventory;

  • Sale in ordinary course of business.
  • Used for administrative purposes.
  • Construction Contracts.
  • Owner Occupied – PPE can be separated and significant.
  • Finance lease.
  • Ancillary Services – Significant


Investment property initially measured at cost.

Subsequent to initial recognition;

  • Cost Model
  • Fair value

About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
This entry was posted in Theory of Accounts and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s