Disclosures as per Ind AS 40

Disclosure – 1

  • its accounting policy for measurement of investment property
  • when 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 business
  • the 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 be disclosed
  • the amounts recognized in profit or loss for
    • rental income from investment property
    • direct operating expenses (including repairs andmaintenance) arising from investment property thatgenerated rental income during the period; and
    • direct operating expenses (including repairs andmaintenance) arising from investment property thatdid not generate rental income during the period
  • the existence and amounts of restrictions on the reliability of investment property or the remittance of income and proceeds of disposal
  • contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements

Disclosure – 2

  • the depreciation methods used
  • the useful lives or the depreciation rates used
  • the gross carrying amount and the accumulated  depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period
  • a reconciliation of the carrying amount of investment property at the beginning and end of the period, showing the following
  • additions, disclosing separately those additions resulting from acquisitions and those resulting from subsequent expenditure recognized as an asset
  • additions resulting from acquisitions through business combinations
  • assets classified as held for sale or included in a disposal group classified as held for sale in accordance with Ind AS 105 and other disposals
  • depreciation
  • the amount of impairment losses recognized, and the amount of impairment losses reversed, during the period in accordance with Ind AS 36
  • the net exchange differences arising on the translation of the financial statements into a different presentation currency, and on translation of a foreign operation into the presentation currency of the reporting entity
  • transfers to and from inventories and owner-occupied property; and
  • other changes
  • the fair value of investment property. When an entity cannot measure the fair value of the investment property reliably, it shall disclose
  • a description of the investment property
  • an explanation of why fair value cannot be measured reliably; and
  • if possible, the range of estimates within which fair value is highly likely to lie

Objective, Scope and Key terms – Ind AS 40

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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 …
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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 …
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