Download Complete Text of Indian Accounting Standard (Ind AS) 40, Investment Property
Ind AS 40: Investment Property
The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
This Standard shall be applied in the recognition, measurement and disclosure of investment property.
This Standard does not apply to:
(a) biological assets related to agricultural activity (see Ind AS 41, Agriculture and Ind AS 16 Property, Plant and Equipment); and
(b) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources.
The following terms are used in this Standard with the meanings specified:
Carrying amount is the amount at which an asset is recognised in the balance sheet.
Cost is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Ind ASs, eg Ind AS 102, Share-based Payment.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See Ind AS 113, Fair Value Measurement).
Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee as a right-of-use asset) 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.
Owner-occupied property is property held (by the owner or by the lessee as a right-of-use asset) for use in the production or supply of goods or services or for administrative purposes.