General transitional provisions

Learning objectives

• Place the general transitional provisions on first-time application of the Standard.L1, L2

Normative references

• IAS 40 §80Transitional provision: an entity that applied IAS 40 (2000) and elects for the first time to classify and account for interests in property held under operating leases as investment property recognises the effect of that election as an adjustment to the opening balance of retained earnings for the period in which the election is first made; if the fair value of those interests was previously disclosed for earlier periods, adjusting the earliest period presented and restating comparatives are encouraged but not required; otherwise, comparatives are not restated and that fact is disclosed.
• IAS 40 §84The requirements of paras. 27 to 29 on the initial measurement of investment property acquired in an exchange of assets apply prospectively, to future transactions only.

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

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