IAS 40

Financial reporting - International Financial Reporting Standards (IFRS) - investment property.

International Accounting Standard 40, dealing with investment property.

IAS 40 defines investment property as property held to earn rentals, or for capital appreciation, or both.

It requires investment properties to be initially measured at cost, but subsequently measured at fair value.

Revaluation gains and losses of investment property must be recognized in profit or loss for the period in which they arise.

The fair value of investment properties must be based on market conditions at the balance sheet date - not on expected future market conditions.

IAS 40 is issued by the International Accounting Standards Board.

See also

• Balance sheet date
• Fair value
• Financial reporting
• FRS 102
• International Accounting Standards Board (IASB)
• International Financial Reporting Standards (IFRS)
• Investment
• Property
• Revaluation

Other resources

• IAS 40 - IAS Plus
• IAS 40 text - IFRS