IFRS Accounting for Real Estate

Course Content:

Overview of the principal provisions of the relevant accounting standards
 IAS 16 Property, plant and equipment
 IAS 17 Leases
 IAS 23 Borrowing costs
 IAS 36 Impairment
 IAS 40 Investment property
 EPRA BPR Best Practice Recommendations

Basic accounting decisions and their implications for preparers and users
 Does the transaction fall under IAS 17?
o If so, is it a finance or an operating lease?
o If not, is it an investment property or not?
 Choosing between cost model and fair value model
 Cost model: how to determine
o Initial cost including borrowing costs and appropriate depreciation schedule
o Identifying relevant indicators for impairment review
o Estimating recoverable amount: ‘Value in use’ versus ‘Fair value less costs to sell’
 Fair value model:
o Estimating fair values (a) of unique assets and (b) in illiquid markets
o Setting valuation assumptions
o Trading and development properties

Property leases: some special issues and their impact on the financial statements
 Rent-free periods and other incentives
 Tenants’ improvements
 Step-up rents

Other issues
 Disclosures, especially with regard to management judgements, impairment and revaluations
 EPRA performance measures, and the EPRA-to-IFRS reconciliation
 Transfers between categories
 Preview of pending IFRS changes and their expected impact

Delivery:	Classroom
Regions:	London
Category:	Accounts & Finance