1、Chapter 6 IAS 40 Investment PropertyProfessional Accounting Education Provided by Academy of Professional Accounting (APA) ACCA P2 Corporate Reporting(INT.) 公司報告（國際會計準則） ACCA Lecturer: Roy Wang 2 Definition 1 IAS 40 Investment Property Initial Measurement 2 Subsequent Measurement 3 Transfer 4 Copyri

2、ght ? ACCAspace4 ACCAspace 中國ACCA特許公認會計師教育平臺 3 Definition Investment property is property(land or building-or part of a building-or both) held to earn rentals or for capital appreciation or both . Under operating leases, the lessor would show the property in its financial statements as investment pr

3、operty. IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 4 Classification of investment property ? Investment purpose Earns capital gain or let it out to earn rental income and if not: Use by company/Owner occupied: IAS 16 PPE; held for sale:) IAS 40 Investment Property C

4、opyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 5 Initial Measurement An investment property should be measured initially at its cost, including transaction costs. IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 6 Subsequent Measurement :FV model , cost model Fair value

5、 model 通常都是用FV model Then any gain/losses should be recognized into the statement of profit or loss.（P/L) Gain: DR Investment property CR P/L Loss: DR P/L CR investment property If the fair value cannot be obtained by the company then it can use cost model (IAS16) IAS 40 Investment Property Copyrigh

6、t ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 7 Cost model：與 IAS16 PPE 處理方法相同 Recognized the investment property at cost and depreciate over its useful economic life. IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 8 ? Transfer Maybe due to some reasons that company may try

7、to reclassify the PPE into investment property then any gains/losses should be recognized appropriately as well. ? FV model ? Cost model IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 9 FV model PPE TO IP Fair value > Carrying value: Fair value of the PPE is $80 with

8、 carrying value being $50 at the date of transfer. DR Investment property $80 CR PPE $50 CR Revaluation Reserve $30 Fair value < Carrying value: Fair value of the PPE is $50 with carrying value being $80 at the date of transfer. DR Investment property $50 CR PPE $80 DR Expense(Impairment) $30 IAS

9、 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 10 ? IP TO PPE Fair value of the investment property is $80 and at this date, company decides to use it on its own. DR PP&E $80 CR Investment property $80 IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許

10、公認會計師教育平臺 11 ? IP TO Inventory Fair value of the investment property is $80 and at this date, company decides to sell it. DR Inventory $80 CR Investment property $80 IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 12 ? Inventory TO IP The inventory carrying value is $50

11、but at this date, company decides not selling them but rather holding them for capital gain purpose. Fair value of the investment property is $100. DR Investment property $100 CR Inventory $50 CR P/L $50(balancing figure) IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 1

12、3 Cost model Then the value to be recognized should be just the carrying value of the items. (Ignoring the fair value) Eg : The inventory is carried at $30 and now the company decides to reclassify the inventory into investment property and the fair value of it is $50. DR Investment property $30 CR

13、Inventory (carrying value) $30 Same principles apply to from PPE to investment property or from investment property to PP&E or inventories. IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 14 Example： Investeria purchases a property for $10m on 1 January 2015 with a 6

14、view to earning rentals and for its capital appreciation. The property is expected to have a useful life of 50 years. At 31 December 2015, market conditions indicated that the fair value of the property has risen to $12m. At 1 January 2015 the proportion of the property that would be considered to b

15、e land rather than buildings is $1m Required: Show how the property would be presented in the financial statements as at 31 December 2015 if Investeria follows the: (a) Fair value model (b) Cost model IAS 40 Investment Property Copyright ? ACCAspace ACCAspace 中國ACCA特許公認會計師教育平臺 15 ? FV Model P/L Other income $2m SOFP Investment property (FV) $12m ? Cost Model P/L Depreciation $180,000