International Accounting Standard 40 INVESTMENT PROPERTY
DISSERTATION BY
Full Name
ICB Member ID:
Submitted in partial fulfilment of the requirements for the National Diploma:
FINANCIAL ACCOUNTING
(SAQA ID: 20366)
MARCH 2024
DECLARATION BY STUDENT:
I declare that this mini dissertation submitted by me, is my own work, that I have referenced
all the sources that I have used and that no part was previously submitted at any tertiary
institution.
Signature: Date:
, ACKNOWLEDGEMENT
I give thanks to The Almighty, first and foremost.
I express my heartfelt gratitude to:
i
, ABSTRACT
The purpose of this dissertation is to assess the International Accounting Standard 40
Investment Property, which was adopted by the International Accounting Standards Board in
April 2001. A thorough research surrounding the current critique of this topic was carried out
by the author and will be discussed at length in chapters to follow.
This paper will set the tone for the reader to progress through, by outlining a brief overview
of the International Financial Reporting Standards Foundation and the development of the
foundation thereof. The author will also bring to the attention of the reader valuable
information such as the advantages and disadvantages of IFRS adoption, leading us to the
adoption of IFRS in South Africa.
The author extensively examines the positive and negative international critique of IAS 40
Investment Property, which represents one part of the IFRS framework. The current critique
will be substantiated by practical evidence presented, with examples based on The Walt
Disney Company, as well as errors presented by BDO Australia, to name a few. These
chapters aim to highlight the progress that the International Accounting Standards Board has
made thus far, and to extrapolate the future progress of the IAS 40 standard.
With the concerns raised by critics encompassed with the opinion of the author, international
recommendations have also been provided to enhance the adherence and compliance of
IAS 40. This dissertation will outline the cruciality of information to be provided relating to
Investment Properties, and for it to be transparent and reliable, as this information aids
investors and entities by making informed decisions on investment properties, locally and
globally.
Findings presented in this paper will not only provide research on the IAS 40 standard but
will also provide a brief overview of added accounting standards that may conflict with IAS
40 if not applied correctly. The author has examined topics to acknowledge the International
Accounting Standards Board and the regulatory framework for financial reporting thus far.
This paper also explores avenues whereby continuous improvement is needed to progress
while accounting for future advancements in the market, its conditions, and in technology.
ii
DISSERTATION BY
Full Name
ICB Member ID:
Submitted in partial fulfilment of the requirements for the National Diploma:
FINANCIAL ACCOUNTING
(SAQA ID: 20366)
MARCH 2024
DECLARATION BY STUDENT:
I declare that this mini dissertation submitted by me, is my own work, that I have referenced
all the sources that I have used and that no part was previously submitted at any tertiary
institution.
Signature: Date:
, ACKNOWLEDGEMENT
I give thanks to The Almighty, first and foremost.
I express my heartfelt gratitude to:
i
, ABSTRACT
The purpose of this dissertation is to assess the International Accounting Standard 40
Investment Property, which was adopted by the International Accounting Standards Board in
April 2001. A thorough research surrounding the current critique of this topic was carried out
by the author and will be discussed at length in chapters to follow.
This paper will set the tone for the reader to progress through, by outlining a brief overview
of the International Financial Reporting Standards Foundation and the development of the
foundation thereof. The author will also bring to the attention of the reader valuable
information such as the advantages and disadvantages of IFRS adoption, leading us to the
adoption of IFRS in South Africa.
The author extensively examines the positive and negative international critique of IAS 40
Investment Property, which represents one part of the IFRS framework. The current critique
will be substantiated by practical evidence presented, with examples based on The Walt
Disney Company, as well as errors presented by BDO Australia, to name a few. These
chapters aim to highlight the progress that the International Accounting Standards Board has
made thus far, and to extrapolate the future progress of the IAS 40 standard.
With the concerns raised by critics encompassed with the opinion of the author, international
recommendations have also been provided to enhance the adherence and compliance of
IAS 40. This dissertation will outline the cruciality of information to be provided relating to
Investment Properties, and for it to be transparent and reliable, as this information aids
investors and entities by making informed decisions on investment properties, locally and
globally.
Findings presented in this paper will not only provide research on the IAS 40 standard but
will also provide a brief overview of added accounting standards that may conflict with IAS
40 if not applied correctly. The author has examined topics to acknowledge the International
Accounting Standards Board and the regulatory framework for financial reporting thus far.
This paper also explores avenues whereby continuous improvement is needed to progress
while accounting for future advancements in the market, its conditions, and in technology.
ii
