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Transfers to and from investment property

Transfers to and from investment property

The IASB has amended IAS 40 on transfers of property assets to, or from, investment property.

Brian O'Donovan

Partner, IFRG

KPMG International


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A property asset is transferred when, and only when, there is evidence of an actual change in its use.

The IASB has amended the requirements in IAS 40 Investment property on when a company should transfer a property asset to, or from, investment property.


“Evidence, not intention, is key – and different types of evidence may support a transfer”

Brian O’Donovan, KPMG’s global IFRS investment property leader

When should a company transfer a property asset?

A transfer is made when and only when there is an actual change in use – i.e. an asset meets or ceases to meet the definition of investment property and there is evidence of the change in use. A change in management intention alone does not support a transfer.

The revised examples of evidence of a change in use included in the amended version of IAS 40 are not exhaustive – i.e. other forms of evidence may support a transfer.

When and how are the amendments applied?

The amendments apply for annual periods beginning on or after 1 January 2018. Early adoption is permitted.

A company has a choice on transition to apply:

  • the prospective approach – i.e. apply the amendments to transfers that occur after the date of initial application – and also reassess the classification of property assets held at that date; or
  • the retrospective approach – i.e. apply the amendments retrospectively, but only if it does not involve the use of hindsight.

Find out

For more information on the amendments, speak to your usual KPMG contact.

This web article is also available in print-friendly format (PDF 120 KB).

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