Investment property is property (land or a building” or part of a building” or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: (a)| use in the production or supply of goods or services or for administrative purposes; or| (b)| Sale in the ordinary course of business.|
The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
Based on the annual report from Bonia Holding Bhd, Cheetah Holding Bhd and Padini Holding Bhd, 3 of this company has disclosed the requirement of FRS 140, under paragraph 75. According to the FRS 140, para 75, an entity shall disclose: Criteria| Bonia| Cheetah| Padini|
a) whether it applies the fair value model or the cost model.| √| √| √| b) if it applies the fair value model, whether, and in what circumstances, property interests held under operating leases are classified and accounted for as investment property.| √| N/A| √| c) when classification is difficult (see paragraph 14), the criteria it uses to distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of business.| X| X| X| d) the methods and significant assumptions applied in determining the fair value of investment property, including a statement whether the determination of fair value was supported by market evidence or was more heavily based on other factors (which the entity shall disclose) because of the nature of the property and lack of comparable market data.| N/A| N/A| N/A| e) the extent to which the fair value of investment property (as measured or disclosed in the financial statements) is based on a valuation by an independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category...