IASB plans to amend IAS 40 to clarify investment property definition

The International Accounting Standards Board (IASB) has published a consultation on a proposed narrow-scope amendment to the investment property standard, IAS 40

The exposure draft, Transfers of investment property (proposed amendment to IAS 40). This proposes a narrow-scope amendment to IAS 40, Investment Property, to clarify the guidance on transfers to, or from, investment properties.

The main amendment will affect paragraph 57 of the standard as the current wording does not specifically address whether a property under construction or development that was previously classified as inventory could be transferred to investment property when there is an evident change in use.

The proposals are open for public comment until 18 March 2016.

The exposure draft, Transfers of Investment Property, is available here

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