IAS 40 - Investment Property
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 40 governs the recognition and measurement of investment property, which is held to earn rentals or for capital appreciation. Entities may choose either the fair value model or the cost model.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IAS 40 - Investment Property** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.