The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February, 2015, have been applicable to the specified class of companies. For other class of companies, i.e., primarily the unlisted entities having net worth less than Rs. 250 crores, Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, has been applicable. However, the Ministry of Corporate Affairs has requested the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) to update Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, to bring them nearer to Indian Accounting Standards.  Accordingly, the Accounting Standards Board, ICAI, initiated to update these standards which will be applicable to all companies having net-worth less than Rs. 250 crores and non-company entities. While formulating these Accounting Standards, the Accounting Standards Board, ICAI, decided to maintain the consistency with the paragraph numbers and with the numbering of Standards of the Indian Accounting Standards.

Ind AS 40 notified by MCA has been taken as the base for formulating the upgraded Standard on Investment Property. There is no corresponding Standard on Investment Property in the existing Accounting Standards. However, AS 13, Accounting for Investments, provides limited guidance on investment properties. An appendix covering major differences between draft AS 40 and provisions of AS 13 in context of Investment Property is included in the draft Standard. Major differences between draft AS 40 and Ind AS 40 are given in another appendix included in this draft Standard.

In this direction, following is the Exposure Draft of the updated Accounting Standard (AS) 40, Investment Property, issued by the Accounting Standards Board of the ICAI, for comments. Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments can be submitted using one of the following methods so as to receive not later than November 10, 2018:

Further clarifications on any aspect of this Exposure Draft may be sought by e-mail to asb@icai.in