IAS 40Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 40 — Investment PropertyL3 · L4

Change in use transfer file

7 missions9 sections to document55 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For each property concerned (one instance per property), describe the change in use and the evidence (dates, works, contracts), judge whether there is evidence of a change in use or only a management intention, enter the cost and the accumulated amounts, the fair value at the date of change, compute the previous carrying amount and the transfer difference, then prepare the entry according to the direction of the transfer. The allocation of the difference (other comprehensive income or profit or loss) is entered according to the direction of the transfer and submitted to the reviewer.

9 sections · 25 blocks · 4 calculations · 5 entries

IAS 40 §57
IAS 40 §59
IAS 40 §60
IAS 40 §61
IAS 40 §62
IAS 40 §63

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.

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

File and entity

Change in use: transfers from an owner-occupied property and from inventory

Case tasks documented here

For each situation, is a change in use evidenced? Justify.
Compute the transfer differences of situations 1, 2 and 3.
Record the four transfers.

Inputs

Property: situation before the change and direction of the transfer
Text
BIEN_OCCUPE_VERS_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
FIN_OCCUPATION_ET_BAIL_SIGNE
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
1,600,000
Accumulated depreciation at the date of change
Number
400,000
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
1,500,000
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
300,000
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
1,200,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
300,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
300,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Account Debit Credit
Investment property 1,500,000
Owner-occupied property 1,200,000
Revaluation difference in other comprehensive income 300,000
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Account Debit Credit
Owner-occupied property 1,500,000
Investment property 1,500,000
Investment property to inventory: deemed cost = fair value
Entry
Account Debit Credit
Inventories 1,500,000
Investment property 1,500,000

Account	Debit	Credit
Investment property	1,500,000
Owner-occupied property		1,200,000
Revaluation difference in other comprehensive income		300,000

Account	Debit	Credit
Owner-occupied property	1,500,000
Investment property		1,500,000

Account	Debit	Credit
Inventories	1,500,000
Investment property		1,500,000

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedPass
Decrease entry balancedNot evaluated
Inventory transfer entry balancedNot evaluated

Assets: 300,000
Liabilities: 0
Profit or loss: 0
OCI: 300,000
Equity: 300,000

File and entity

Change in use: transfers from an owner-occupied property and from inventory

Case tasks documented here

For each situation, is a change in use evidenced? Justify.
Compute the transfer differences of situations 1, 2 and 3.
Record the four transfers.

Inputs

Property: situation before the change and direction of the transfer
Text
BIEN_OCCUPE_VERS_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
FIN_OCCUPATION_ET_MISE_EN_LOCATION
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
1,500,000
Accumulated depreciation at the date of change
Number
600,000
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
850,000
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
50,000
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
900,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
-50,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
50,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Account Debit Credit
Investment property 850,000
Fair value loss 50,000
Owner-occupied property 900,000
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Account Debit Credit
Owner-occupied property 850,000
Investment property 850,000
Investment property to inventory: deemed cost = fair value
Entry
Account Debit Credit
Inventories 850,000
Investment property 850,000

Account	Debit	Credit
Investment property	850,000
Fair value loss	50,000
Owner-occupied property		900,000

Account	Debit	Credit
Owner-occupied property	850,000
Investment property		850,000

Account	Debit	Credit
Inventories	850,000
Investment property		850,000

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedNot evaluated
Decrease entry balancedPass
Inventory transfer entry balancedNot evaluated

Assets: -50,000
Liabilities: 0
Profit or loss: -50,000
OCI: 0
Equity: -50,000

File and entity

Change in use: transfers from an owner-occupied property and from inventory

Case tasks documented here

For each situation, is a change in use evidenced? Justify.
Compute the transfer differences of situations 1, 2 and 3.
Record the four transfers.

Inputs

Property: situation before the change and direction of the transfer
Text
STOCK_VERS_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
BAUX_SIGNES_ET_CLES_REMISES
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
2,000,000
Accumulated depreciation at the date of change
Number
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
2,300,000
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired
300,000

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
2,000,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
300,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
300,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Account Debit Credit
Investment property 2,300,000
Inventories 2,000,000
Fair value gain 300,000
Investment property to owner-occupied property: deemed cost = fair value
Entry
Account Debit Credit
Owner-occupied property 2,300,000
Investment property 2,300,000
Investment property to inventory: deemed cost = fair value
Entry
Account Debit Credit
Inventories 2,300,000
Investment property 2,300,000

Account	Debit	Credit
Investment property	2,300,000
Inventories		2,000,000
Fair value gain		300,000

Account	Debit	Credit
Owner-occupied property	2,300,000
Investment property		2,300,000

Account	Debit	Credit
Inventories	2,300,000
Investment property		2,300,000

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedNot evaluated
Decrease entry balancedNot evaluated
Inventory transfer entry balancedPass

Assets: 300,000
Liabilities: 0
Profit or loss: 300,000
OCI: 0
Equity: 300,000

File and entity

Change in use: transfers from an owner-occupied property and from inventory

Case tasks documented here

For each situation, is a change in use evidenced? Justify.
Compute the transfer differences of situations 1, 2 and 3.
Record the four transfers.

Inputs

Property: situation before the change and direction of the transfer
Text
IMMEUBLE_DE_PLACEMENT_VERS_BIEN_OCCUPE
Evidence of the change in use: event, date, document
Text
DEBUT_OCCUPATION_PAR_L_ENTITE
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
3,000,000
Accumulated depreciation at the date of change
Number
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
3,000,000
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
3,000,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Account Debit Credit
Owner-occupied property 3,000,000
Investment property 3,000,000
Investment property to inventory: deemed cost = fair value
Entry
Account Debit Credit
Inventories 3,000,000
Investment property 3,000,000

Account	Debit	Credit
Owner-occupied property	3,000,000
Investment property		3,000,000

Account	Debit	Credit
Inventories	3,000,000
Investment property		3,000,000

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedNot evaluated
Decrease entry balancedNot evaluated
Inventory transfer entry balancedNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Change in use: transfers from an owner-occupied property and from inventory

Case tasks documented here

For each situation, is a change in use evidenced? Justify.
Compute the transfer differences of situations 1, 2 and 3.
Record the four transfers.

Inputs

Property: situation before the change and direction of the transfer
Text
TERRAIN_DETENU_COMME_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
INTENTION_SEULE_AU_PROCES_VERBAL
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
400,000
Accumulated depreciation at the date of change
Number
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
400,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
-400,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
400,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Debit Owner-occupied property ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use
Investment property to inventory: deemed cost = fair value
Entry
Debit Inventories ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Management's intention only: no transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedNot evaluated
Decrease entry balancedNot evaluated
Inventory transfer entry balancedNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

File of an investment property portfolio: classification, measurement, transfers and disclosures

Case tasks documented here

Do T and U give rise to a transfer? Justify.
Compute the transfer difference of T.
Record the acquisition of N and its 20X5 interest, the changes of P and Q, the transfer of T, the disposal of S and the depreciation of V.

Inputs

Property: situation before the change and direction of the transfer
Text
BIEN_OCCUPE_VERS_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
FIN_OCCUPATION_ET_BAIL_SIGNE
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
1,300,000
Accumulated depreciation at the date of change
Number
400,000
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
1,500,000
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
600,000
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
900,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
600,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
600,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Account Debit Credit
Investment property 1,500,000
Owner-occupied property 900,000
Revaluation difference in other comprehensive income 600,000
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Account Debit Credit
Owner-occupied property 1,500,000
Investment property 1,500,000
Investment property to inventory: deemed cost = fair value
Entry
Account Debit Credit
Inventories 1,500,000
Investment property 1,500,000

Account	Debit	Credit
Investment property	1,500,000
Owner-occupied property		900,000
Revaluation difference in other comprehensive income		600,000

Account	Debit	Credit
Owner-occupied property	1,500,000
Investment property		1,500,000

Account	Debit	Credit
Inventories	1,500,000
Investment property		1,500,000

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedPass
Decrease entry balancedNot evaluated
Inventory transfer entry balancedNot evaluated

Assets: 600,000
Liabilities: 0
Profit or loss: 0
OCI: 600,000
Equity: 600,000

File and entity

File of an investment property portfolio: classification, measurement, transfers and disclosures

Case tasks documented here

Do T and U give rise to a transfer? Justify.
Compute the transfer difference of T.
Record the acquisition of N and its 20X5 interest, the changes of P and Q, the transfer of T, the disposal of S and the depreciation of V.

Inputs

Property: situation before the change and direction of the transfer
Text
TERRAIN_DETENU_COMME_IMMEUBLE_DE_PLACEMENT
Evidence of the change in use: event, date, document
Text
INTENTION_SEULE_AU_PROCES_VERBAL
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
500,000
Accumulated depreciation at the date of change
Number
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
500,000
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
-500,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
0
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
500,000
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Debit Owner-occupied property ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use
Investment property to inventory: deemed cost = fair value
Entry
Debit Inventories ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Management's intention only: no transfer
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Evidence of the change in use documentedPass
Increase entry balancedNot evaluated
Decrease entry balancedNot evaluated
Inventory transfer entry balancedNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

Inputs

Property: situation before the change and direction of the transfer
Text
Evidence of the change in use: event, date, document
Text
Cost of the owner-occupied property or previous carrying amount (inventory, investment property)
Number
Accumulated depreciation at the date of change
Number
Accumulated impairment at the date of change
Number
Fair value at the date of change in use
Number
Increase taken to other comprehensive income (owner-occupied property becoming investment property)
NumberRequired
Decrease taken to profit or loss (owner-occupied property becoming investment property)
NumberRequired
Gain taken to profit or loss (inventory becoming investment property)
NumberRequired

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transfer

Analysis

IAS 40 §57IAS 40 §59IAS 40 §60IAS 40 §61IAS 40 §62IAS 40 §63

Points reviewed: model, evidence of the change, direction and treatment
ChecklistRequired
- Cost model: carrying amount unchanged; fair value model: difference to measure
- Evidence of a change in use, not a mere intention
- Direction of the transfer and treatment of the difference identified

Transfer calculations

Calculations

IAS 40 §59IAS 40 §60IAS 40 §62IAS 40 §63

Previous carrying amount: cost − depreciation − impairment
Calculation
Cost of the owner-occupied property or previous carrying amount (inventory, investment property) ; − Accumulated depreciation at the date of change ; − Accumulated impairment at the date of change
Transfer difference (signed): fair value − previous carrying amount
Calculation
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Increase at the date of change
Calculation
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment
Decrease at the date of change
Calculation
Fair value at the date of change in use ; − Previous carrying amount: cost − depreciation − impairment

Transfer entries

Entries

Owner-occupied property to investment property: increase in other comprehensive income
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment ; Credit Revaluation difference in other comprehensive income ← Increase taken to other comprehensive income (owner-occupied property becoming investment property)
Owner-occupied property to investment property: decrease in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Debit Fair value loss ← Decrease taken to profit or loss (owner-occupied property becoming investment property) ; Credit Owner-occupied property ← Previous carrying amount: cost − depreciation − impairment
Inventory to investment property: difference in profit or loss
Entry
Debit Investment property ← Fair value at the date of change in use ; Credit Inventories ← Previous carrying amount: cost − depreciation − impairment ; Credit Fair value gain ← Gain taken to profit or loss (inventory becoming investment property)
Investment property to owner-occupied property: deemed cost = fair value
Entry
Debit Owner-occupied property ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use
Investment property to inventory: deemed cost = fair value
Entry
Debit Inventories ← Fair value at the date of change in use ; Credit Investment property ← Fair value at the date of change in use

Judgement on the change in use

Judgment

IAS 40 §57

Evidence of the change in use
JudgmentRequired
Change in use evidenced: transfer / Management's intention only: no transfer
Rule and cross-reference: a change in use must be evidenced; a change in management's intention does not by itself evidence a change in use (IAS 40, para. 57).
Rationale: facts and dates relied on, alternative rejected
TextRequired

Conclusion

Transfer, difference and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References