Interaction with IAS 2, IAS 16 and IFRS 15

Learning objectives

• Place the boundary with inventories, owner-occupied property and sales in the ordinary course of business.L2, L3

Normative references

• IAS 40 §9Examples of items that are not investment property and are outside the scope: (a) property intended for sale in the ordinary course of business or in the process of construction or development for such sale (IAS 2); (c) owner-occupied property (IAS 16; IFRS 16 for a right-of-use asset), including property held for future use as owner-occupied property, property occupied by employees and owner-occupied property awaiting disposal; (e) property leased to another entity under a finance lease. Sub-paragraphs (b) and (d) have been deleted.

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

1 question

• Valvane holds three properties: (1) apartments built to be sold in the ordinary course of its business, (2) a building in which it carries on its business, (3) a building leased to third parties. Which allocation of standards is consistent?L3