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Exposure Draft ED/2015/9 Transfers of Investment Property (Proposed amendment to IAS 40)

Paragraph 57 of IAS 40 Investment Property provides guidance on transfers to, or from, investment properties. However, it 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 IASB proposes to amend paragraph 57 of IAS 40 to:

(a) state that an entity shall transfer a property to, or from, investment property when, and only when, there is a change in use of a property supported by evidence that a change in use has occurred; and

(b) re-characterise the list of circumstances set out in paragraph 57(a)–(d) as a non-exhaustive list of examples of evidence that a change in use has occurred instead of an exhaustive list.

To download the Exposure Draft, click here.

Invitation to comment

The Exposure Draft is open for comment until 17 February 2016.

You may provide your comments online or email us at technical@masb.org.my