IAS 40 · Case studies (Step 3 of 5)
Practical case
Aldane Immobilier SA, a fictitious property portfolio company, IFRS financial statements, year end 31 December, amounts in euros. It holds an office tower, a mixed building, its head office and flats intended for sale, and applies the fair value model to its investment property (case data).
L1 · Guided · Year N — acquisition and classification
You progressively build Aldane's file: classification and entry cost (level 1, year N), fair value and expenditure (level 2, year N), transfers and year end (level 3, year N+1), then disposal, deferred tax and notes (level 4, year N+2). The amounts, dates, model choice and floor-area allocation key are case data or assumptions; the rules come from IAS 40 and neighbouring standards.
Standard involved: IAS 40 Investment Property. Aldane Immobilier starts organising its portfolio. Classify its properties, then calculate the entry cost of Aldane Tower. The questions are guided.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Aldane Immobilier SA, a fictitious property portfolio company, IFRS financial statements, year end 31 December, amounts in euros. It holds an office tower, a mixed building, its head office and flats intended for sale, and applies the fair value model to its investment property (case data).
Initial event · L1·Year N — acquisition and classification · Current stage
Standard involved: IAS 40 Investment Property. Aldane Immobilier starts organising its portfolio. Classify its properties, then calculate the entry cost of Aldane Tower. The questions are guided.
Pieces added
New period · L2·Year N — closing at 31 December N · Upcoming: unlocks after the current stage
New period · L3·Year N+1 — changes in use · Upcoming: unlocks after the current stage
New period · L4·Year N+2 — disposal, tax and notes · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Supporting document
| Property | Situation |
|---|---|
| A. Aldane Tower | Office tower bought this year, all floors let to businesses |
| B. Rive Building | Four floors of 1,000 m² each: three are let to third parties, one is used by Aldane for its administration. The floors could be sold separately |
| C. Mérane Head Office | Building used as Aldane's head office |
| D. Lysane Residence | Flats built to be sold to customers |
First level: all the data is in the brief and the pieces of this level.
4 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify each property or part of a property.
A. Aldane Tower
B. The three let floors
B. The floor used by Aldane
C. Mérane Head Office
D. Lysane Residence
3 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references