EFRAG: Draft comment letter on the IASB's ED/2015/9 Transfers of Investment Property
10 December 2015
EFRAG issued its draft comment letter on the IASB's Exposure Draft ED/2015/9 Transfers of Investment Property: Proposed Amendment to IAS 40.
On 19 November 2015, the IASB issued the Exposure Draft ED/2015/9 Transfers of Investment Property: Proposed Amendment to IAS 40 (the ED). The IASB proposes to amend IAS 40 Investment Property in order to:
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reinforce the principle that an entity should transfer property into, or out of, investment property when, and only when, there is evidence of a change in the use of such property; and
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re-characterise the list of circumstances set out in paragraphs 57(a)–(d) as a list of examples of evidence that a change in use has occurred.
The IASB proposes to apply the amendment retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
In its draft comment letter, EFRAG welcomes and supports the amendment, and believes it will reduce divergence in practice and, therefore, improve the quality of financial reporting under IFRS in regard to investment properties.
EFRAG requests comments by 15 March 2016.
Full press release
Full draft comment letter
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