The link with IFRS 13

Learning objectives

• Relate the fair value of the property to the IFRS 13 framework without restating it.L2, L3

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).
• IAS 40 §33Fair value model: after initial recognition, all investment property is measured at fair value, except in the cases described in para. 53.

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

2 questions

• IAS 40 contains its own complete set of rules to determine the fair value of an investment property, with no reference to another standard.L2
• Xalme's accounting department must determine the fair value of an investment property measured under the fair value model, and hesitates between four frameworks. Which one frames this determination?L3