The IASB has amended IAS 40 on transfers of property assets to, or from, investment property.
The IASB has amended the requirements in IAS 40 Investment property on when a company should transfer a property asset to, or from, investment property.
“Evidence, not intention, is key – and different types of evidence may support a transfer”
Brian O’Donovan, KPMG’s global IFRS investment property leader
A transfer is made when and only when there is an actual change in use – i.e. an asset meets or ceases to meet the definition of investment property and there is evidence of the change in use. A change in management intention alone does not support a transfer.
The revised examples of evidence of a change in use included in the amended version of IAS 40 are not exhaustive – i.e. other forms of evidence may support a transfer.
The amendments apply for annual periods beginning on or after 1 January 2018. Early adoption is permitted.
A company has a choice on transition to apply:
For more information on the amendments, speak to your usual KPMG contact.
This web article is also available in print-friendly format (PDF 120 KB).
<p>© 2018 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.<br> </p>