INVESTMENT PROPERTY

IND-AS 40
 Biological Assets (Ind As
41)

Mineral rights and mineral

reserves such as oil, natural
Scope gas and similar non-
regenerative resources.

This Standard does not deal

with matters covered in Ind
AS 17 Leases
 It include Land/ Building/
part of Building/ Both

Owned by enterprise or
Investment held by lease under
Property finance lease

Held for rental/ capital

appreciation/ both
 Vacant land held for undetermined future
use

Land held for sale in short term

Examples of Building leased out under operating

Investment lease

property Building held with intention of letting

out an operating lease in future

Property under construction to be held as

investment property
 Held for sale in an ordinary course of
Business (Ind As 2)

Held as construction contract

Investment
property
Held for the purpose of production
Exclusions or process of service (Ind As 16)

Held for administration purpose

 Self occupied
(Ind As 16)

If its can sold

or leased is
part

Lease to others

Investment
property held for Separable

multiple purpose Yes (Ind AS 16)

More
Inseparable significant

No (Ind As 40)
 Investment
property shall be The cost of the
recognised as an investment
asset when, and property can be
only when: measured reliably.

Recognition of
Investment
Property It is probable that
the future
economic benefits
that are associated
with the investment
property will flow
to the entity; and
 An investment
Measurement property shall be
measured initially at its
of Investment Initial Measurement
cost. Transaction costs
shall be included in the
Property initial measurement.
 Subsequent Cost Fair Value
Measurement Model Model
 ▪ Under cost model, the Investment
Property is valued as per Ind-AS 16 Plant,
COST MODEL Property, Equipment.
 Investment Property is measured at fair
value, which is the amount for which the
property could be exchanged between
knowledgeable, willing parties is an

Fair Value arms length transaction.

Model
A gain or loss arising from a change in
the fair value of an investment property
should be recognised in net profit or
loss for the period in which it arises.
 ▪ These relate to:
▪ Choice of fair value model or cost model
▪ Whether property interests held as operating leases are
included in investment property
▪ Criteria for classification as investment property
▪ Assumptions in determining fair value
Disclosures of ▪ Use of independent professional valuer (encouraged but not
Investment required)

Property ▪ Rental income and expenses

▪ Any restrictions or obligations
▪ An entity that adopts the fair value model must also disclose a
reconciliation of the carrying amount of the investment
property at the beginning and end of the period.