IAS 40 Investment Property - Essay Example

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There has been a widely held debate in terms of a need to classify a property as an investment property or a property which is in use by the owner.International Financial Reporting Standards provides a clear cut difference between the property which is intended to be held as investment and the property to be held for the purpose of use other than any investment purpose…
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IAS 40 Investment Property
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Download file to see previous pages There has been a widely held debate in terms of a need to classify a property as an investment property or a property which is in use by the owner. International Financial Reporting Standards (IFRS) provides a clear cut difference between the property which is intended to be held as investment and the property to be held for the purpose of use other than any investment purpose (Deloitte, 2012). On the other hand, if Generally Accepted Accounting Principles are taken into consideration, then there cannot be found any difference between the two as such. However IFRS has recognized the need for providing specific guidance especially for the property which is to be held by the owner for the purpose of investment (Deloitte, 2012).This article aims to study the various impacts of IAS 40 “Investment Property” with respect to different elements. The paper is structured in such a manner that first section highlights the overview of IAS 40 in which a brief history, definition, objective and scope of Investment Property is briefly discussed. Second part of this article outlines at the accounting treatment of Investment Property such recognition, measurement and disclosure requirements are explained in detail. Next section provides a brief comparison of IFRS and GAAP in respect of Investment Property followed by a section which illustrates an example reproduced from the annual report of a publicly listed company. Discussion and conclusion of IAS 40 will summarize this article.
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I didn’t know how to start my essay. "IAS 40 Investment Property" helped me out a lot! Especially the list of first sentence was valuable.

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