Ind AS 40 – Property

Objective, Scope and Key terms – Ind AS 40

Objective, Scope and Key terms – Ind AS 40  Objective The prime two objectives of the Ind AS 40 are as follows: to prescribe the accounting treatment for investment property andto prescribe the related disclosure requirements Scope This Standard shall be applied in the recognition, measurement and disclosure of investment propertyThis Standard does not apply to:biological assets related to agricultural activity (Refer Ind AS 41and Ind AS 16); andmineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. Key terms Fair value The price that would be received to sell an asset orpaid to transfer a liabilityin an orderly transactionbetween market participantsat the measurement …
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Recognition and measurement – Ind AS 40

Recognition and measurement – Ind AS 40 An owned investment property shall be recognized as an asset when, and only when:it is probable that the future economic benefits that are associated with the investment property will flow to the entity; andthe cost of the investment property can be measured reliably An entity evaluates under this recognition principle all its investment property costs at the time they are incurredThese costs include costs incurred initially to acquire an investment property and costs incurred subsequently (if the recognition criteria are met )to add to, replace part of, or service a property Under the recognition principle, an …
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Measurement after Recognition – Ind AS 40

Measurement after Recognition – Ind AS 40 Accounting Policy An entity shall adopt as its accounting policy the cost model per Ind AS 16to all of its investment property This Standard requires all entities to measure the fair value of investment property, for the purpose of disclosure even though they are required to follow the cost model An entity is encouraged, but not required, to measure the fair value of investment property on the basis of a valuation by an independent valuer who holds a recognized and relevant professional qualification and has recent experience in the location and category of the investment property being …
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Disclosures – Ind AS 40

Disclosures as per Ind AS 40 Disclosure – 1 its accounting policy for measurement of investment propertywhen classification is difficult, the criteria it uses to distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of businessthe extent to which the fair value of investment property (as measured or disclosed in the financial statements) is based on a valuation by an independent valuer who holds a recognized and relevant professional qualification and has recent experience in the location and category of the investment property being valued. If there has been no such valuation, that fact shall …
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