Investments

Investment Property
Definition:

Investment property is property (land or a building, or part

of a building, or both) held by the owner to earn rentals or
for capital appreciation or both, rather than for:

a) use in the production or supply of goods or services or

for administrative purposes, or

b) sale in the ordinary course of business.

Investment Property
Examples:

• Land held for long-term capital appreciation

• Land held for undetermined use
• Building owned by the reporting entity leased
out under an operating lease
• Property being constructed or developed for
future use as investment property
Investment Property

PFRS for Small PFRS for SMEs Full PFRS

Entities

Cost
Initial Including
Measurement Cost Cost borrowing costs
directly
attributable to the
acquisition,
construction or
production of a
qualifying asset
Investment Property

PFRS for Small PFRS for SMEs Full PFRS

Entities
Fair Value
Subsequent Cost or Fair If can be measured Cost or Fair
Measurement Value reliably without Value
undue cost or effort

Fair value
cannot be Account as PPE
N/A N/A
measured at cost
reliably
Investment Property

PFRS for Small PFRS for SMEs Full PFRS

Entities
An entity shall Transfer to or from Transfer to or from
transfer a property investment investment
Transfer to, or from, properties applies Property shall be
investment property when the property made when and only
only when the meets or ceases to when there is a
property first meet the definition change of use.
meets, or ceases to of an investment
meet, the definition property.
of investment
property.
Investment Property

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Entities
cost model General disclosures:
a) the depreciation a) Whether the entity
methods used. used cost or fair
Disclosure b) the useful lives or value model.
the depreciation The same as Full b) Amount of rental
rates used. PFRS income with the
c) the gross carrying related expense
amount and the c) Restrictions on the
accumulated investment
depreciation property.
(aggregated with d) Contractual
accumulated obligations to
impairment losses) purchase or
at the beginning construct
and end of the investment
reporting period. property.
Investment Property

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Entities
d) a reconciliation of Fair Value model
the carrying amount a) Reconciliation of
at the beginning and the carrying
Disclosure end of the reporting amount at the
period beginning and end
showing separately: of reporting period.
i. additions.
b) Net gains or losses
ii. disposals.
from fair value
iii. acquisitions
through business adjustments
combinations. c) Whether significant
iv. impairment losses fixtures have been
recognized or separately
reversed in profit or recognized
loss
v. depreciation.
vi. other changes.
Investment Property

PFRS for Small PFRS for SMEs Full PFRS

Entities
fair value model Cost model
a) whether an a) Depreciation
independent valuer method and its
Disclosure was involved; useful life.
b) the methods and b) Detailed
significant reconciliation of the
assumptions applied gross cost of
in determining the investment property
fair value of and related
investment accumulated
property; depreciation.
c) Fair value of the
investment property
where possible. If
not possible, such
fact shall be
explained.
Investment Property

PFRS for Small PFRS for SMEs Full PFRS

Entities
c) a reconciliation between
the carrying amounts of
investment property at the
beginning and end of the
Disclosure period, showing separately:
i. additions, disclosing
separately those additions
resulting from acquisitions
through business
combinations.
ii. net gains or losses from
fair value adjustments.
iii. transfers to cost model
when a reliable measure
of fair value is no longer
available without undue
cost or effort.
iv. transfers to and from
inventories and owner-
occupied property.
v. other changes.
Investment Property
Derecognition

 On disposal
 Permanently withdrawn from use
 When no future economic benefits are
expected from the investment property