The Issues Of Recognition And Measurement Of The Investment Property According To Ias 40

Characteristics of the Investment Property differ critically from the characteristics of the property held by the owner. This is a complex economic object, where the owner of an enterprise earns the income from the property right on the immovable property, not from its physical use. This is the property held by the enterprises for earning the income from their lease or by their future sales by increase of their value, for the purposes of gaining a profit. The information regarding the investment property is very actual for the users of the financial reporting. The issues of accounting of the investment property and the requirements of their reflection in the financial statements are determined in IAS 40 – “Investment Property”. The present Article, on the grounds of generalization of theoretical and methodological provisions, considers the essence of the investment property as of the object of accounting, criteria of recognition, classification and measurement. Their formulation is based mainly on the international accounting standards and various scientific researches. The Article provides discussions on the models of measurement of the investment property as an independent object of accounting after recognition thereof and, of reflection of the relevant changes in compliance with the international accounting standards. A special attention is paid to the fair value model of accounting and other conceptual issues related to the investment property.