• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

Property held for sale is temporarily being rented out, does it need to be classified as IAS 40?


I have a property which is held for sale in the normal course of business (IAS2), however due to a slow rental market I am renting out the property short term until i can find a buyer. Do i need to move the asset from IAS 2 (inventory) to IAS 40 (investment property?

asked Nov 30 in IAS 40 - Investment Property by NattySide

1 Answer

0 votes
Refer to IAS 40 that says ..transfers to, or from, investment property shall be made when, and only when, there is a change in use, evidenced by:

(a) commencement of owner-occupation, for a transfer from investment property to owner-occupied property;

(b) commencement of development with a view to sale, for a transfer from investment property to inventories;

(C) end of owner-occupation, for a transfer from owner-occupied property to investment property; or

(d) commencement of an operating lease to another party, for a transfer from inventories to investment property.

If you believe renting out wouldn't last long more than a year, then I think you are not required to recognize investment property. If not yes.
answered Dec 3 by anonymous


...