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  • IAS 40 Decision Tree

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    adriencb
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    IAS 40 provides guidance for accounting for investment property. The decision tree shows that an entity first considers if a property is for sale in the ordinary course of business, in which case IAS 2 applies. If not, and the property is owner-occupied, IAS 16 applies. Otherwise, the tree determines if the property is under construction or development for a third party or for future use as an investment property, in which case IAS 11 or IAS 40 respectively would apply.

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    IAS 40 Decision tree

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    IAS 40 provides guidance for accounting for investment property. The decision tree shows that an entity first considers if a property is for sale in the ordinary course of business, in which case IAS 2 applies. If not, and the property is owner-occupied, IAS 16 applies. Otherwise, the tree determines if the property is under construction or development for a third party or for future use as an investment property, in which case IAS 11 or IAS 40 respectively would apply.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    19 views1 page

    IAS 40 Decision Tree

    Uploaded by

    adriencb
    IAS 40 provides guidance for accounting for investment property. The decision tree shows that an entity first considers if a property is for sale in the ordinary course of business, in which case IAS 2 applies. If not, and the property is owner-occupied, IAS 16 applies. Otherwise, the tree determines if the property is under construction or development for a third party or for future use as an investment property, in which case IAS 11 or IAS 40 respectively would apply.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    IAS 40 Decision Tree

    Start

    No

    Is the property for sale in Yes


    the ordinary course of Apply IAS 2 Inventories
    business?

    No

    Yes Apply IAS 16 Property Plant


    Is the property owner- and Equipment (Cost model
    occupied? and revaluation model)

    No

    Is the property being Is the property being


    constructed or developed Yes constructed or developed Yes Apply IAS 11
    for the purposes other for a third party under
    Constructions Contracts
    than future use as an previously agreed
    investment property? contractual terms?

    No No

    The property is an Apply IAS 16 Property


    investment property. Apply Plant and Equipment
    IAS 40 Investment (Cost model and
    Property revaluation model)

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