- DEFINITIONS OF TERMS
- RECOGNITION AND MEASUREMENT
- EXAMPLES OF FINANCIAL STATEMENT DISCLOSURES
- US GAAP COMPARISON
An investment in real estate held with the intention of earning rentals or for capital appreciation or both, is described as an investment property. An investment property is capable of generating cash flows independently of other assets held by the entity. Investment property is sometimes referred to as being a “passive” investment, to distinguish it from actively managed property such as plant assets, the use of which is integrated with the rest of the entity's operations. This characteristic is what distinguishes investment property from owner-occupied property, which is property held by the entity or a lessee under a finance lease, for use in its business (i.e., for use in production or supply of goods or services or for administrative purposes).
Revised IAS 40, effective in 2005, for the first time permits property interests held in the form of ...