Klépierre (2010) 2. Accounting principles and methods [extract] 2.10 Investment property [extract] 2.10.1 Cost model [extract] 2.10.2 The component method [extract] The component method is applied based on the recommendations of the Fédération des Sociétés Immobilières et Foncières (French Federation of Property Companies) for components and useful life: Four components have been identified for each of these asset types (in addition to land): structures; facades, […]

IVG Immobilien AG (2005) 5.2 Investment properties [extract] Investment properties are carried at depreciated cost in accordance with IAS 40.56 and not at market value. As industry standards with regard to choice of accounting policy for investment property are still evolving, IVG opted to apply the cost model in its consolidated financial statements from 2004. This has the advantage that it is possible to change […]

Bayer AG (2010) Notes to the consolidated financial statements of the Bayer Group [extract] 4 Basic principles, methods and critical accounting estimates [extract] Property, plant and equipment [extract] Where an obligation exists to dismantle or remove an asset or restore a site to its former condition at the end of its useful life, the present value of the related future payments is capitalized along with […]

IVG Immobilien AG (2007) 3. Changes to accounting [extract] Valuation of investment properties in accordance with fair value method Pursuant to IAS 40 (Investment Property) property held as a financial investment is valued upon acquisition at cost. Until 31 December 2006, the IVG Group carried out subsequent valuations of its investment properties in accordance with the cost model, by which investment properties were valued at […]

IFRIC 18 and control of assets Situation 1 A real estate company is building a residential development in an area that is not connected to the electricity network. In order to have access to the electricity network, the real estate company is required to construct an electricity substation that is then transferred to the network company responsible for the transmission of electricity. It is assumed […]

Klépierre (2011) 2.11 Investment property held for sale [extract] The provisions of IFRS 5 regarding presentation and measurement apply to investment property measured using the cost model under IAS 40 whenever the sales process is underway and the asset concerned fulfils the criteria for recognition as an asset held for sale. An impairment test is conducted immediately before any asset is recognized as being held […]

IFRIC 18 and revenue recognition The facts are as in Situation 1 in above. By regulation, the network company has an obligation to provide ongoing access to the network to all users of the network at the same price, regardless of whether they transferred an asset. Therefore, users of the network that transfer an asset to the network company pay the same price for the […]

Land Securities Group PLC (2012) 2. Significant accounting policies [extract] (c) Investment properties [extract] When the Group begins to redevelop an existing investment property for continued future use as an investment property, the property remains an investment property and is accounted for as such. When the Group begins to redevelop an existing investment property with a view to sell, the property is transferred to trading […]

Skanska AB (2010) Note 1 Consolidated accounting and valuation principles [extract] IAS 16, “Property, Plant and Equipment” [extract] Property, plant and equipment that consist of parts with different periods of service are treated as separate components of property, plant and equipment. Depreciation occurs on a straight-line basis during estimated useful life, or based on degree of use, taking into account any residual value at the […]

Transfers from inventory In 2011, an entity purchased land with the intent to construct an apartment building on the land and sell the apartments to private customers. Accordingly, the land was classified as inventory. During 2011, the prices for residential properties decreased and at the beginning of 2012 the entity decided to change its original business plans. Instead of constructing an apartment building and selling […]