Document ID: chunk:federal_register_of_legislation:F2023C00417:reg:56:p1
Version: federal_register_of_legislation:F2023C00417
Segment Type: reg
Provision Reference: reg 56 (pt 1/9)
Character Range: 30097–32868

56  After initial recognition, an entity that chooses the cost model shall measure investment property:
(a) in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations if it meets the criteria to be classified as held for sale (or is included in a disposal group that is classified as held for sale);
(b) in accordance with AASB 16 if it is held by a lessee as a right-of-use asset and is not held for sale in accordance with AASB 5; and
(c) in accordance with the requirements in AASB 116 for the cost model in all other cases.

Transfers
57 An entity shall transfer a property to, or from, investment property when, and only when, there is a change in use. A change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. In isolation, a change in management's intentions for the use of a property does not provide evidence of a change in use. Examples of evidence of a change in use include:
(a) commencement of owner-occupation, or of development with a view to owner-occupation, for a transfer from investment property to owner-occupied property;
(b) commencement of development with a view to sale, for a transfer from investment property to inventories;
(c) end of owner-occupation, for a transfer from owner-occupied property to investment property; and
(d) inception of an operating lease to another party, for a transfer from inventories to investment property.
(e) [deleted]
58 When an entity decides to dispose of an investment property without development, it continues to treat the property as an investment property until it is derecognised (eliminated from the statement of financial position) and does not reclassify it as inventory. Similarly, if an entity begins to redevelop an existing investment property for continued future use as investment property, the property remains an investment property and is not reclassified as owner-occupied property during the redevelopment.
59 Paragraphs 60–65 apply to recognition and measurement issues that arise when an entity uses the fair value model for investment property. When an entity uses the cost model, transfers between investment property, owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that property for measurement or disclosure purposes.
60 For a transfer from investment property carried at fair value to owner-occupied property or inventories, the property's deemed cost 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