Document ID: chunk:federal_register_of_legislation:F2023C00417:reg:56:p2
Version: federal_register_of_legislation:F2023C00417
Segment Type: reg
Provision Reference: reg 56 (pt 2/9)
Character Range: 32647–35348

for subsequent accounting in accordance with AASB 116, AASB 16 or AASB 102 shall be its fair value at the date of change in use.
61 If an owner-occupied property becomes an investment property that will be carried at fair value, an entity shall apply AASB 116 for owned property and AASB 16 for property held by a lessee as a right-of-use asset up to the date of change in use. The entity shall treat any difference at that date between the carrying amount of the property in accordance with AASB 116 or AASB 16 and its fair value in the same way as a revaluation in accordance with AASB 116.
62 Up to the date when an owner-occupied property becomes an investment property carried at fair value, an entity depreciates the property (or the right-of-use asset) and recognises any impairment losses that have occurred. The entity treats any difference at that date between the carrying amount of the property in accordance with AASB 116 or AASB 16 and its fair value in the same way as a revaluation in accordance with AASB 116. In other words:
(a) any resulting decrease in the carrying amount of the property is recognised in profit or loss. However, to the extent that an amount is included in revaluation surplus for that property, the decrease is recognised in other comprehensive income and reduces the revaluation surplus within equity.
(b) any resulting increase in the carrying amount is treated as follows:
(i) to the extent that the increase reverses a previous impairment loss for that property, the increase is recognised in profit or loss. The amount recognised in profit or loss does not exceed the amount needed to restore the carrying amount to the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised.
(ii) any remaining part of the increase is recognised in other comprehensive income and increases the revaluation surplus within equity. On subsequent disposal of the investment property, the revaluation surplus included in equity may be transferred to retained earnings. The transfer from revaluation surplus to retained earnings is not made through profit or loss.
63 For a transfer from inventories to investment property that will be carried at fair value, any difference between the fair value of the property at that date and its previous carrying amount shall be recognised in profit or loss.
64 The treatment of transfers from inventories to investment property that will be carried at fair value is consistent with the treatment of sales of inventories.
65 When an entity completes the construction or development of a self-constructed investment property that will be carried at fair value, any difference between the