The defined terms

Learning objectives

• Explain the defined terms (carrying amount, cost, fair value, owner-occupied property) and how they relate to IAS 16 and IFRS 13.L1, L2

Normative references

• IAS 40 §5Definitions: carrying amount, cost, fair value, investment property (land or a building held to earn rentals or for capital appreciation, including through a right-of-use asset) and owner-occupied property (held for use in the production or supply of goods or services or for administrative purposes).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• The standard treats "carrying amount" and "fair value" as a single defined term: both express the same notion.L1
• In IAS 40, which description matches "owner-occupied property"?L2