IASB publishes exposure draft addressing transfers of investment property
24 November 2015
This edition outlines the proposed amendment to IAS 40 Investment Property set out in the recent exposure draft ED/2015/9 Transfers of Investment Property (“the ED”) which was issued in November 2015 for public comment.
The IASB proposes an amendment to the guidance in IAS 40 that concerns transfers to, or from, investment properties.
Under the proposed new wording, an entity would reclassify a property to, or from, investment property when, and only when, there is evidence that a change in use of the property has occurred. The Standard’s current list of circumstances in which a transfer should be made is proposed to be re-presented as examples of evidence that a change in use has occurred.
The IASB does not propose an effective date for the proposed amendment. However, early application would be permitted.
Comments on the proposal are due by 18 March 2016.