Attention, Accountants: "Change In Use Of Tangible Assets" Clarified!

Tangible assets are typically a significant part of the balance sheet, so reclassifying them is often delicate work—made all the more so by the huge financial statement errors that doing it wrongly can cause.

On 14 March 2018, the European Commission endorsed amendments, bundled in a document called the Transfers of Investment Property, to IAS 40 Investment Property. The amendments, published by the International Accounting Standards Board (IASB), aim to clarify whether paragraph 57 of IAS 40 allows a property under construction to be reclassified as investment property (instead of an inventory property) when there is an evident plan to change its use.

The mention of intention