Download Quick Reference on Ind AS 40 Investment Property
The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
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.
An owned investment property should be recognised as an asset only when:
(a) it is probable that the future economic benefits that are associated with the investment property will flow to the entity; and
(b) the cost of the investment property can be measured reliably.
An owned investment property should be measured initially at its cost. Transaction costs should be included in the initial measurement.
An investment property held by a lessee as a right-of-use asset shall be measured initially at its cost in accordance with Ind AS 116.