IAS 40 INVESTMENT PROPERTY Held by co to earn rental or capital Appreciation. Example: Lend held for undecided future use.

Building leased out under operating lease. Land and building for long term capital appreciation. Following are not Investment Property: Building or property leased out under Financial Lease. If Co Do Business of dealing in Property or buildings than it is the case of IAS 2 Because it is cos Inventory. Building or Owner Occupied use by the Co than it is the case of IAS 16 (PP&E). If Property Construct for Third party than it is the case of IAS 11.

Partial Use By Owner Of Property: If owner use partial part of the property & rent out some part of the property for rental or capital appreciation and the portion which is given to lease can be separately rent out or sold than IAS 40 Applies and Owner occupied portion if in significance. Ancillary Service: If Owner provide insignificant Ancillary service than it can be recognized it as Investment Property e.g (the owner provide security and maintenance service to the Lease). But if owner provide significant Ancillary service than it should be classified as Owner Occupied Property e.g ( such as owner managed the hotel). Intracompany Rentals: If Parent or Subsidiary give each other any property it cannot be classified in consolidated financial statement as Investment Property But in separate financial statement it can be classified as Investment property.