Interaction with IFRS 16

Learning objectives

• Place the right-of-use asset held as investment 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).

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

2 questions

• Under the IAS 40 definition of investment property, who can hold an investment property?L2
• An accounting director comments on the right-of-use asset held as investment property. Which of the statements is incorrect?L3