• 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

treatment of owner occupied property now classified as investment property.


I have classifed a property from being used for business to investment property I would like to know its treatment.

asked Jun 8, 2014 in IAS 40 - Investment Property by anonymous

1 Answer

0 votes
The change of classification of properties from owner occupied property /business use to investment property is allowed only when its use has actually been changed.  For the transfer of property form owner occupied to investment property at fair value, IAS 16 should be applied form the date of recognition up to change of use.  Any difference arising from the application of IAS 16 for the measurement of fair value will be treated as revaluation and revaluation surplus or deficit will be recognized directly in comprehensive income statement.
answered Nov 2 by Maher Ali Level 2 Member (4,610 points)


...