Interaction with IAS 16

Learning objectives

• Place the cross-references between IAS 40 and IAS 16 (cost model, owner-occupied property).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 §56Cost model: after initial recognition, (a) IFRS 5 if the property meets the criteria to be classified as held for sale; (b) IFRS 16 if the property is held by a lessee as a right-of-use asset and is not held for sale; (c) IAS 16 (cost model: depreciation and impairment) in all other cases.

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

1 question

• What is the link between IAS 40 and IAS 16?L2