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IAS 40Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIAS 40 — Investment PropertyL2 · L3 · L4

Classification and mixed-use file

4 missions7 sections to document50 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

For each property (one instance per property), describe the facts, state whether the portions can be sold separately, enter the share occupied by the entity and the share of services in the whole arrangement, then justify the classification (whole investment property, separate accounting or owner-occupied property) and whether the services are significant. The standard sets no thresholds: classification is a matter of judgement and is documented by the facts relied on.

7 sections · 14 blocks · 0 calculations · 0 entries

  • IAS 40 §5
  • IAS 40 §7
  • IAS 40 §10
  • IAS 40 §11
  • IAS 40 §12
  • IAS 40 §13
  • IAS 40 §15
  • IAS 40 §14

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

4 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Mixed-use building and services to occupants: classification judgement
Case tasks documented here
  • Compute the occupied share of building A and the share of services of building B.
  • Classify building A. Justify.
  • Classify building B. Justify.
1

Inputs

Inputs

  • Property: nature, occupants, leases and use by the entity

    Text

    IMMEUBLE_USAGE_MIXTE_BATIMENT_A

  • Can the portions be sold or leased separately?

    Choice

    Portions not separable

    Portions separately saleable or leasable / Portions not separable

  • Share of the area occupied by the entity (in %)

    Number

    7.5 %

  • Services provided to occupants: nature and contracts

    Text

  • Share of services in the total income of the arrangement (in %)

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Analysis of the classification

Analysis

IAS 40 §5IAS 40 §7IAS 40 §10IAS 40 §11IAS 40 §12IAS 40 §13IAS 40 §15

  • Points reviewed: holding purpose, separability, own use, services, intragroup lease

    ChecklistRequired

    • Property held to earn rentals or for capital appreciation
    • Separability of the portions checked
    • Portion used by the entity identified and measured
    • Ancillary services provided to occupants reviewed
    • Intragroup lease reviewed (individual and consolidated statements)
4

Judgements

Judgment

IAS 40 §5IAS 40 §7IAS 40 §10IAS 40 §11IAS 40 §12IAS 40 §13IAS 40 §15

  • Classification of a mixed-use property

    JudgmentRequired

    Investment property in its entirety (owner-occupied portion insignificant)

    Investment property in its entirety (owner-occupied portion insignificant) / Separate accounting of the portions / Owner-occupied property in its entirety

    Rule and cross-reference: if the portions can be sold separately, they are accounted for separately; otherwise the property is investment property only if the owner-occupied portion is insignificant (IAS 40, para. 10). The standard gives no percentage.

  • Rationale: facts relied on, separability, occupied share, alternative rejected

    TextRequired

  • Significance of the services provided to occupants

    JudgmentRequired

    Insignificant ancillary services: the property remains investment property / Significant services: owner-occupied property

    Rule and cross-reference: if the ancillary services provided to occupants are a relatively insignificant component of the arrangement as a whole, the property remains investment property; the assessment rests on the facts (IAS 40, paras. 11 and 13).

  • Rationale: nature of the services, weight in the arrangement, alternative rejected

    TextRequired

5

Conclusion

Conclusion

  • Classification retained and judgements submitted to the reviewer

    ConclusionRequired

6

Disclosures

Disclosure

IAS 40 §10IAS 40 §13IAS 40 §14

  • Disclosures on classification

    ChecklistRequired

    • Classification criteria disclosed when classification is difficult
    • Any split and the judgements noted
7

Normative references

References

  • Paragraphs cited in this workpaper and their verification status

    References

8

Checks and financial statement impact

  • Judgement on mixed use documentedPass
  • Judgement on services documentedNot filled in this instance
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0