Investment Property Essay

The objective of this measure is to prescribe the accounting preaching for enthronement home and related disclosure requirements. enthronisation property is property (land or a expressionor part of a buildingor both) held (by the owner or by the lessee under a pay withdraw) to earn rentals or for capital appreciation or both, rather than for (a) commit in the production or supply of goods or services or for administrative purposes or (b) sale in the ordinary course of business.A property inte pass off that is held by a lessee under an operating lease may be classified and accounted for as enthronization property provided that (a) the rest of the definition of investment property is met (b) the operating lease is accounted for as if it were a pay lease in accordance with IAS 17 Leases and (c) the lessee uses the fair nourish model set out in this Standard for the asset recognised.Investment property shall be recognised as an asset when, and only when (a) it is apparent tha t the future economic benefits that are associated with the investment property will extend to the entity and (b) the be of the investment property can be measured reliably. An investment property shall be measured signly at its cost. Transaction be shall be included in the initial measurement.The initial cost of a property interest held under a lease and classified as an investment property shall be as prescribed for a finance lease by paragraph 20 of IAS 17, ie the asset shall be recognised at the lower of the fair value of the property and the show up value of the minimum lease payments. An equivalent amount shall be recognised as a liability in accordance with that same paragraph. The Standard permits entities to choose either (a) a fair value model, under which an investment property is measured, after initial measurement, at fair value with changes in fair value recognised in profit or divergence or (b) a cost model.The cost model is specified in IAS 16 and requires an i nvestment property to be measured after initial measurement at depreciated cost (less any accumulated impairment losses). An entity that chooses the cost model discloses the fair value of its investment property. Fair value is the bell that would be received to sell an asset or paid to maneuver a liability in an orderly transaction between food market participants at the measurement date.An investment property shall be derecognised (eliminated from the statement of pecuniary position) on disposal or when the investment property is permanently pull away from use and no future economic benefits are expected from its disposal. Gains or losses arising from the retirement or disposal of investment property shall be determined as the difference between the net disposal outlet and the carrying amount of the asset and shall be recognised in profit or loss (unless IAS 17 requires otherwise on a sale and leaseback) in the period of the retirement or disposal.