IASB issues amendments to IAS 40

On 8 December 2016, the IASB published amendments to IAS 40 – Investment Property. The changes clarify when an entity must transfer a property asset to (or from) the ‘investment property’ category.

Keywords: Mazars, Thailand, IFRS, IAS, IASB

10 February 2017

Such a transfer shall take place if, and only if, the property meets or ceases to meet the definition of investment property as set out in the standard, and there is evidence of a change in use.

It should be noted that:

  • a change in management’s intentions does not in itself constitute a change in use;
  • the list of indicators set out in paragraph 57a) to d) has been retained, but is now clearly labelled as non-exhaustive.

The amendments become effective for financial periods commencing on or after 1 January 2018, and early application is permitted.

As regards transition requirements, entities shall apply these amendments to changes in use of property that occur after the beginning of the reporting period in which the entity first applies the amendments.

Retrospective application will be permitted provided that it does not require the use of hindsight. 

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