HKAS 40 Investment Property - Hong Kong Society of Accountants

Investment Property Hong Kong Accounting Standard 40 HKAS 40 Revised June 2010July 2012 HKAS 40 © Copyright 2 COPYRIGHT © Copyright 2012 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting Standard contains IFRS Foundation copyright material. Reproduction within Hong Kong in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and inquiries concerning reproduction and rights for commercial purposes within Hong Kong should be addressed to the Director, Finance and Operation, Hong Kong Institute of Certified Public Accountants, 37/F., Wu Chung House, 213 Queen's Road East, Wanchai, Hong Kong. All rights in this material outside of Hong Kong are reserved by IFRS

Foundation. Reproduction of Hong Kong Financial Reporting Standards outside of Hong Kong in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Hong Kong should be addressed to the IFRS Foundation at www.ifrs.org. Further details of the copyright notice form ifrs foundation is available at http://app1.hkicpa.org.hk/ebook/copyright-notice.pdf HKAS 40 (December 2007June 2010) © Copyright 3 CONTENTS paragraphs INTRODUCTION IN1-IN18 HONG KONG ACCOUNTING STANDARD 40 INVESTMENT PROPERTY OBJECTIVE 1 SCOPE 2-4 DEFINITIONS 5-15 RECOGNITION 16-19 MEASUREMENT AT RECOGNITION 20-29 MEASUREMENT AFTER RECOGNITION 30-56 Accounting policy 30-32C Fair value model 33-55 Inability to determine fair value reliably 53-55 Cost model 56 TRANSFERS 57-65 DISPOSALS 66-73 DISCLOSURE 74-79 Fair value model and cost model 74-79 Fair value model 76-78 Cost model 79 TRANSITIONAL PROVISIONS 80-84 Fair value model 80-82 Cost model 83-84 EFFECTIVE DATE 85-85AB WITHDRAWAL OF SSAP 13 86 APPENDIX: Comparison with International Accounting Standards IASB BASIS FOR CONCLUSIONS ON IAS 40 (AS REVISED IN 2003) IASC BASIS FOR CONCLUSIONS ON IAS 40 (2000) Hong Kong Accounting Standard 40 Investment Property (HKAS 40) is set out in paragraphs 1-86. All the paragraphs have equal authority. HKAS 40 shall should be read in the context of its objective and the IASB's Basis for Conclusions, the Preface to Hong Kong Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Standards. HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. HKAS 40 (June 2010) © Copyright 4 Introduction IN1 Hong Kong Accounting Standard 40 Investment Property (HKAS 40) replaces SSAP 13 Accounting for Investment Property (revised in 2000), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. Reasons for issuing HKAS 40 IN2 The objectives of the HKICPA in issuing HKAS 40 were to reduce or eliminate alternatives, redundancies and conflicts within the HKFRSs, to deal with some convergence issues and to make other improvements. IN3 The HKICPA did not reconsider the fundamental approach to the accounting for investment property. The main features IN4 The main features of HKAS 40 are described below. IN5 A property interest that is held by a lessee under an operating lease may be classified and accounted for as investment property provided that: (a) the rest...

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