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

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
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