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The objective of the Amendments is to reinforce the principle in IAS 40 Investment Property that a property should be transferred to, or from, investment property when there isevidence that a change in use has occurred.
The Amendments become effective for annual periods beginning on or after 1 January 2018, with earlier application permitted.
Do the Amendments meet the IAS Regulation technical endorsement criteria?
Based on the above reasoning, EFRAG has concluded that the Amendments meet the qualitative characteristics of relevance, reliability, comparability and understandability required to support economic decisions and the assessment of stewardship, and raise no issues regarding prudent accounting. EFRAG has also assessed that the Amendments do not create any distortion in its interaction with other IFRS and that all necessary disclosures are required. Therefore EFRAG has concluded that the Amendments are not contrary to the true and fair view principle.
EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions. Comments are requested by 20 March 2017.