investment property - nelson cpa · • introduce cost model, ... investment property is property...

1

copy 2005-07 Nelson 1

Investment Property (HKAS 40)19 March 2007

Nelson LamNelson Lam 林智遠林智遠MBA MSc BBA ACA CFA CPA(Aust) CPA(US) FCCA FCPA(Practising)


Before HKAS 40 helliphellip

Accounting policy (200405) on buildingsbull The cost of construction of the Duke of Windsor

Social Service Building ldquothe Buildingrdquo has been written down to a nominal value of HK$1

bull The Council hires out meeting rooms and auditorium in the Building to third parties and lease out some portion of usable floor area to certain bodies approved by the Government

bull Income derived from hiring meeting rooms and auditorium and leasing out usable floor area have been accounted for in the statement of operations as hiring fees rental and management fee income

CaseCase

Is it investment property

2



MTR Corporation LtdMTR Corporation Ltd statedbull The adoption of HKAS 40 would require all

revaluation gains or losses of investment properties to be taken directly to the profit and loss account hellip

bull The volatility of property prices therefore could have significant impact on the level and consistency of the Companyrsquos future operating profits

(2004 Annual Report)

CaseCase


After creditingFair value changes on

investment properties - 4226 2576

For year ended 31 Dec 2004HK$rsquoM

Turnover 1154Profit before tax 783

2005HK$rsquoM12505176

561561

Cases First helliphellipCaseCase

2006HK$rsquoM12683798

2727

Profit is constantly higher than the revenue

3





Turnover 5257Gross profit 959Profit before tax 1705

2005HK$rsquoM2275

7857384


What if 2006 helliphellipWhat if 2006 helliphellip

2006HK$rsquoM4764

9249063

Profit is also constantly higher than the revenue


Application of HKAS 40 in HKApplication of HKAS 40 in HK

HKAS 40HKAS 40

Todayrsquos Agenda

Simple but Comprehensive


Recap and key issues


Real Life Cases and Examples


HK(SIC) Interpretation 21HK(SIC) Interpretation 21

4


From SSAP 13 to HKAS 40 - Summary

bull Introduce new requirements6 Disposals

bull Exemption to certain companies removed1 Scope

bull Detailed disclosure required including fair value of investment property

7 Disclosure

bull Transfer requirements are similar to those in SSAP 17 PPE before

5 Transfers

bull Introduce cost model chosen between fair value model

bull Fair value model refined

4 Measurementafter recognition

bull Same recognition principle applied to all costs (aligned with HKAS 16)

bull Measurement of assets from exchange of assets introduced (aligned with HKAS 16)

3 Recognition and Measurement at Recognition

bull Redefine investment propertybull Introduce owner-occupied property

2 Definitions


1 Scope ndash Exemption RemovedExemption for some entities eliminated

bull The exemption in SSAP 13 for certain insurance companies and charitable government subvented and not-for-profit organisations was eliminated in HKAS 40

Implies that all these entities are required to apply HKAS 40 from the financial period beginning from 1 Jan 2005

Specific transitional provisionsfor this elimination additionally introduced in Nov 2005

Insurance co not-for-profit entities must follow

More to be discussed later hellip


5


bull Amended and clearer definition on an investment property

SSAP 13An investment property is an interest in land andor buildingsa) in respect of which construction work and development have

been completed andb) which is held for its investment potential any rental income

being negotiated at armrsquos lengthHKAS 40

Investment property is property (land or a building ndash or part of a building ndash or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciationor both rather than fora) use in the production or supply of goods or

services or for administrative purposes orb) sale in the ordinary course of business

2 Definitions ndash Revised



















Howrsquos about property held by the lessee under an operating lease

Examples of investment property under HKAS 40 includebull Property leased out under operating leasesbull Property held for long-term capital appreciationbull Property held for a currently undetermined future usebull Vacant property to be leased out under operating leases

6


2 Definitions ndash Extend to Operating Leases

bull A property interestndash that is held by a lessee under an operating lease

may be classified and accounted for asinvestment property if and only ifbull the property would otherwise meet the definition of an

investment property andbull the lessee uses the Fair Value Model

bull This classification alternative is available on a property-by-property basis

bull However once this classification alternative is selected for one such property interest held under an operating lease all propertiesclassified as investment property shall be accounted forusing the Fair Value Model

An entity has a choice


SimpleSimpleLetrsquos term this classification as

ldquoOperating Lease IP AlternativerdquoLetrsquos term this classification as

ldquoOperating Lease IP Alternativerdquo



bull Entity GV has 3 properties as followsbull Leasehold property Abull Leasehold property Bbull Freehold property C

bull All the properties are held to earn rentalbull What is the implication of HKAS 40 on its properties

ExampleExample

bull Property C is an investment property under HKAS 40 and GV must use HKAS 40 to account for it

bull Property A and B are not investment property under HKAS 40 However GV can choose to account for either A or B or both as investment property under HKAS 40

bull If Property A and B are not accounted for under HKAS 40 they will be accounted for under HKAS 17

bull Measurement under HKAS 40 helliphellip to be discussed later





7


2 Definitions ndash Owner-Occupied Property

bull Introduce a new term owner-occupied propertyndash Defined as a property held (by the owner or by the lessee under a

finance lease) for use in the production or supply of goods or services or for administrative purposes

ndash In substance a property under HKAS 16ndash Being one of the examples that is NOT an investment property


Examples that are NOT investment property includebull Owner-occupied propertybull Property (completed or under development) intended

for sale in the ordinary course of businessbull Property being constructed or developed for third partiesbull Property leased out under finance leasebull Property that is being constructed or developed for

future use as investment property


bull Howrsquos the classification for existing investmentproperty being redeveloped for continued futureuse as investment property Still Investment PropertyStill Investment Property

ExampleExample

Which HKASWhich HKASHKAS 16 amp 17

HKAS 2HKAS 11HKAS 17

HKAS 16 amp 17

8



Annual Report 2004 stated thatbull Investment and hotel properties with an unexpired

lease term of more than 20 years are included in the balance sheet at their open market value helliphellip

bull It is the grouprsquos practice to maintain hotel properties such that the residual values result in depreciation being insignificant

bull The related maintenance expenditure is dealt with in the income statement in the year in which it is incurred

bull Hotel furniture and fixtures is included in other fixed assets and is depreciated

CaseCase



Refer back to HKAS 16 for definition of property plant and equipmentbull Property plant and equipment are tangible items that

a) are held for use in the production or supply of goods or servicesfor rental to others or for administrative purposes and

b) are expected to be used during more than one period

Investment Property

Investment Property

Owner-occupied Property


Both for rental how to distinguishFor example how to distinguishbull A flat leased out for rentalbull A hotel

Cash Flow Extent of Ancillary Services

9



bull One of the key indicators in determining the classification between investment property and owner-occupied property

Cash Flow

bull held to earn rentals or for capital appreciation or both

bull therefore generates cash flows largely independently of the other assets held by an entity

bull the production or supply of goods or services (or the use of property for administrative purposes)

bull generates cash flows that are attributable not only to property but also to other assets used in the production or supply process

Investment Property

Investment Property

Owner-occupied property



Investment Property

Investment Property



Ancillary services not significant


Significant ancillary services provided



rarr investment property

If owner-managed hotel was classified as investment property before 2005 it should be reclassified asbull property plant and equipment (HKAS 16) orbull lease (HKAS 17)

bull Significant impact on hotel group



bull provided by an entity to the occupants of a property it holds is also considered

owner-occupied property eg a owner-managed hotel is not an

investment property

10



bull It may be difficult to determine whether ancillary services are so significant that a property does not qualify as investment property

bull for example there may be a spectrum from one end to another

bull Then judgement is required to determinebull Entities should develop consistent criteria

for use in exercising the judgement





Passive investorrArr Investment propertyrArr Use HKAS 40

Significant exposure to variation in the cash flows rArr Owner-occupiedrArr Use HKAS 16

How to determine those in between these 2 ends




Beijing Enterprises Holdings LtdBeijing Enterprises Holdings Ltdbull Has early adopted all new HKFRS in 2004 and stated that

ndash Hotel properties were previouslybull not depreciated (except where the unexpired term of the lease is 20

years or less)bull stated at their open market values on the basis of annual professional

valuations performed at the end of each financial yearndash Upon the adoption of HKAS 16 and HKAS 40 hotel properties would be

bull stated at valuation less accumulated depreciation and any accumulated impairment losses

ndash As a consequence of this change in accounting policy for hotel propertiesbull an aggregate amount of HK$6797000 was charged to the consolidated

profit and loss account for the year ended 31 Dec 2004 helliphellip

2 Definitions ndash Owner-Occupied PropertyCaseCase

11





bull Before 2005 its hotel properties are classified as investment properties which are stated at annual professional valuations at the balance sheet date

bull It announced on 17 Dec 2004 that its hotel properties ldquowill no longer be accounted for as investment propertiesrdquo from 2005

bull It will adopt the following accounting policies retroactively1 The underlying buildings and integral plant and machinery will be

stated at cost less accumulated depreciation and impairment2 The underlying freehold land will be stated at cost less impairment3 The underlying leasehold land will be stated at cost and subject to

annual operating lease rental charge (amortization of land cost)

ShangriShangri--La Asia LtdLa Asia Ltd(extracted from 2003 Annual Report and Announcement of 17 Dec 2004)

bull Owner-managed hotels cannot be classified as investment property

bull They can be classified as property plant and equipment (HKAS 16) andor leases (HKAS 17)



CaseCase


bull 2004 Final Results Announcement of 31 Mar 2005 further stated that from 1 Jan 2005ldquoAdoption of these new accounting policies will have the following significant consequencesa) The net book value of fixed assets the overall provision for deferred

tax liabilities and the net asset value of the Group will be reducedb) The annual depreciation and lease rental charges will increase and

this will reduce the profit after tax attributable to the shareholders (ldquoPATrdquo) and the earnings per share (ldquoEPSrdquo) of the Grouprdquo

ShangriShangri--La Asia LtdLa Asia Ltd






12


bull Letrsquos do some comparison for 2004 (in US$rsquo000)


Net assets at 31122004bull as reported in 2004 Annual Report 3109bull as announced on 26 Aug 2005 2379


Depreciation for the year ended 31122004bull as reported in 2004 Annual Report 39038bull as announced on 26 Aug 2005 474102121

2323

CaseCase


2 Definitions ndash Partially Used Only

bull Some properties comprise a portion held as investment property and another portion NOT held as investment property

bull If these portions

Could be sold separately


Could not be sold separatelyCould not be

sold separately

or leased out separately under a finance leaserArr an entity accounts for the portions separately

rArr the property is investment propertyonly if an insignificant portion is NOT held as investment property

13










2 Definitions ndash Partially Used OnlyCaseCase

Point for considerationbull Fulfil the definition of investment property bull Generate passive cash flow or owner-occupiedbull Separable under HKAS 40 If not significant portion for rental



An entity owns property that is leased to and occupied by its parent or another subsidiaryrArr The property does not qualify as investment property in the

consolidated financial statements because the property is owner-occupied from the perspective of the group

rArr But from the perspective of the entity that owns it the property is investment property if it meets the definition of investment propertybull The lessor treats the property as investment

property in its individual financial statements

Changed from SSAP 13bull 15 benchmark is removedbull Property leased to group companies is still

investment property in an entityrsquos individual financial statements

ConsolidatedConsolidated

IndividualIndividual

14



Can the following freehold properties be classified as investment property in individual level and in consolidation

bull Parent Arsquos property leased to Subsidiary B

bull Subsidiary Crsquos property leased to Parent D

bull Subsidiary Ersquos property leased to Subsidiary F

bull Parent Grsquos property leased to Associate H

ExampleExample

Individual Consolidation

Yes No

Yes No

Yes No

Yes Yes


3 Recognition and Measurement

bull Same as HKAS 16 Property Plant and Equipmentbull Investment property shall be recognised as an asset when and only

whena) it is probable that the future economic benefits that are associated

with the investment property will flow to the entity andb) the cost of the investment property can be measured reliably

Recognition criteriaInitial CostInitial Cost Subsequent

ExpenditureSubsequent Expenditure

15



Initial CostInitial Cost Subsequent ExpenditureSubsequent Expenditure

SSAP 17 Criteria not the same

HKAS 40 Same criteria

bull Probable that future economic benefit of the asset will flow to the enterprise

bull Cost measured reliably



bull Probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the entity


bull Probable that future economic benefit of the asset will flow to the entity

bull Cost measured reliablySame criteria applied to both costs



Clearer approach on so-calledComponent Accounting


Expenditure not fulfilling the recognition criteria will be charged to income statement

Recognition criteria(capitalisation) for


3 Recognition and MeasurementMeasurement at Recognitionbull An investment property shall be measured initially at its costbull Transaction costs shall be included in the initial

measurementbull The initial cost of a property interest held under a lease and

classified as an investment propertyndash shall be as prescribed for a finance lease in HKAS 17

ie the asset shall be recognised at the lower ofbull the fair value of the property andbull the present value of the minimum lease payments

ndash An equivalent amount shall be recognised as a liability in accordance with that same paragraph

bull Introduce the measurement base for investment property acquired from exchangebull Same as HKAS 16 Property Plant and Equipment

16



If the acquired item is not measured at fair value its cost is measured at the carrying amount of the asset given up

Commercial Substance


Fair Value of Exchanged Asset


Rule on Exchange of Assets RevisedSame amendment in

HKAS 16 andHKAS 38

Same amendment in HKAS 16 and

HKAS 38

Cost of PPE acquired in exchange is measured at fair value

But not required if

In HKAS 16 ndash the exchange transaction lack of

Commercial Substance or

In SSAP 17ndash it is an exchange for similar assets

ndash the Fair Value is not reliably measurable(both asset received and given up)



To determine Commercial Substancebull considering the extent to which its future cash flows

are expected to change as a result of the transaction

Commercial Substance exists ifa) the configuration (risk timing and amount) of

the cash flows of the asset received differs from that of the asset transferred or

b) the entity-specific value of the portion of the entityrsquos operations affected by the transactionchanges as a result of the exchange and

c) the difference in (a) or (b) issignificant relative to the fair valueof the assets exchanged



17



bull Even comparable market transactions do not exist Fair Value of an asset is reliably measurable ifa) the variability in the range of various

reasonable fair value estimates is not significant for that asset or

b) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value

bull If an entity is able to determine reliably the fair value of either the asset received or the asset given up

then the fair value of the asset given up is used to measure the cost of the asset receivedbull unless the fair value of the asset received is

more clearly evident




4 Measurement after Recognition

Introduce Cost Model and choose either

Cost ModelCost Model

Fair Value ModelFair Value Model

HKAS 40 implicitly implies that the choice can only be elected on the first-time adoption of HKAS 40The model chosen should be applied to all investment properties except for1 Property held under operating lease

classified as investment properties 2 Investment property backing liabilities

that pay a return linked directly to thefair value of or returns from specificassets including that investment property

3 Investment property with a fair value thatcannot be reliably determinable on acontinuing basis (ie inability to determinefair value reliably)

and

No choiceonly fair value model

Choose a model for all such properties

No choiceonly cost model

18



bull However even Cost Model is adopted HKAS 40 still requires all entities to determine the fair value of investment property helliphellipbull For disclosure purpose the fair value of the investment property

has to be disclosed in notes to the financial statementbull In determining the fair value of investment property for both cost

model and fair value modelrArr an entity is only encouraged but not required to rely on a

professional valuerrsquos valuation



More FlexibleMore Flexible


and



Fair Value ModelFair Value ModelAfter initial recognition an entity that chooses rarr

bull shall measure all of its investment property at fair value except in the cases that1 the fair value cannot be determined reliably or2 the cost model is chosen for the investment property backing liabilities that pay a

return linked directly to the fair value of or returns from specific assets including that investment property

bull When a property interest held by a lessee under an operating lease is classified as an investment propertyrArr the fair value model must be applied for all investment

propertiesbull A gain or loss arising from a change in the fair value of

investment property shall be recognised in profit or loss for the period in which it arises

DepreciationTax Implication

19



bull Entity GV has 3 properties leasehold property A leasehold property B and freehold property C

bull All the properties are held to earn rentalbull What is the implication of HKAS 40 if GV chooses to account for A as

investment property

ExampleExample

bull Then GV has no choice in accounting for the investment propertybull It must adopt fair value model in accounting for all investment properties

including property A and C (subject to specific exceptions)bull While property A is accounted for at fair value model under HKAS 40

property B can still be accounted for under HKAS 17





HKAS 40bull Uses fair value instead of open market value

ndash but in substance they are similarndash not the same as SSAP 13 HKAS 40 only encourages but not

requires a profession valuation on a fair value



bull Fair value is defined as the amount for which an asset could be exchanged between knowledgeable willing parties in an armrsquos length transactionndash Same definition used in other HKFRSs and HKASsndash But HKAS 40 provides more explanations unique for a fair value of a property

bull The fair value of investment property shall reflectmarket conditions at the balance sheet date


No depreciation required in HKAS 40

Not our concern this time

20



Interim Report 2005 clearly stated thatInterim Report 2005 clearly stated that

CaseCase

bull The directors consider it inappropriate for the company to adopt two particular aspects of the newrevised HKFRSs as these would result in the financial statements in the view of the directors eitherbull not reflecting the commercial substance of the business orbull being subject to significant potential short-term volatility as

explained below helliphellip


4 Measurement after RecognitionCaseCase

bull HKAS 40 ldquoInvestment propertyrdquo requires an assessment of the fair value of investment properties

bull The group intends to follow the same accounting treatment as adopted in 2004 which is to value such investment properties on an annual basis

bull Accordingly the investment properties were not revalued at 30 June 2005 since the directors consider that such change of practice could introduce a significant element of short-term volatility into the income statement in respect of assets which are being held on a long-term basis by the group helliphellip

bull It is not practicable to estimate the financial effect of this non-compliance as no interim valuation of the properties has been conducted


21



bull With effect from 1 January 2006 in order to comply with the HKAS 40 ldquoInvestment Propertyrdquo bull the group states its investment properties at fair value based on

independent third party valuation at both the interim and year-end balance sheet dates

bull This has resulted in an increase in the fair value of investmentproperties and a related deferred tax charge in the consolidatedincome statement for the six months ended 30 June 2006 amounting to HK$546 million and HK$89 million respectively helliphellip

However 2006 Interim Report stated However 2006 Interim Report stated that helliphellipthat helliphellip


Under HKAS 40Fair value has the following attributesbull No deduction for transaction costs it may incur on sale

or other disposalbull Time-specific as of a given datebull Reflects rental income from current leases and from

future leases in light of current conditions (with reasonable and supportable assumption)

bull Refers to knowledgeable willing partiesbull Refers to an armrsquos length transaction



What are the differences between fair value and value in use

What are the differences between What are the differences between fair value and value in usefair value and value in use

22


bull Value in use consists of the following attributes which are not found in fair valuea) additional value derived from creation of a portfolio of propertiesb) synergies between investment property and other assetsc) legal rights or restrictions that are specific only to the current owner

andd) tax benefits or tax burdens that are specific to the current owner










bull The best evidence of fair value is given by current prices inan active marketndash For similar property in the same location and condition andndash Subject to similar lease and other contracts

bull An entity takes care to identify any differencesndash in the nature location or condition of the property orndash in the contractual terms of the leases and other contracts relating to the

property

23




bull If NO current prices in an active market an entity considers the information from a variety of sources includinga) current prices in an active market for properties of different nature

condition or location (or subject to different lease or other contracts) adjusted to reflect those differences

b) recent prices of similar properties on less active markets with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices and

c) discounted cash flow projections (based on reliable estimates of future cash flows and using discount rate with appropriate adjustments and assumptions)

bull Considers difference conclusions to arrive reliable estimate of fair value within a range of reasonable fair value estimates



Fair Value ModelFair Value Modelbull There is a rebuttable presumption that an entity can reliably determine the fair value of an investment property on a continuing basis

bull However in exceptional cases and in initial recognition of investment property there is clear evidence that the fair value of the investment property is not reliably determinable on a continuing basisndash This arises when and only when

bull comparable market transactions are infrequent andbull alternative reliable estimates of fair value (for example based on

discounted cash flow projections) are not availablebull In such cases an entity shall measure that investment property (alone)

using the cost model in HKAS 16ndash residual value shall be assumed to be zerondash apply HKAS 16 until disposal of the investment propertyndash shall continue to account for other investment properties using the

fair value model

24




bull If an entity has previously measured an investment property at fair valuendash it shall continue to measure the property at fair value until disposal or

cessation to be investment property even ifbull comparable market transactions become less frequent orbull market prices become less readily available

Once you chose Fair Value Model you cannot fall back to Cost Model




After initial recognition an entity that chooses rarrbull shall measure all of its investment properties in accordance with the

requirements of HKAS 16 for that cost model other thanbull those that meet the criteria to be classified as held for sale (or are included

in a disposal group that is classified as held for sale) in accordance with HKFRS 5 Non-current Assets Held for Sale and Discontinued Operations

bull then those investment properties shall be measured in accordance with HKFRS 5





25


Hang Hang SengSeng BankBank (2004 Annual Report)

bull Hang Seng Bank has NOT early adopted HKAS 40 but stated thatldquoBy adoption of HKAS 40 investment properties are carried at fair

value with the changes in fair value reported directly in the profit and loss accountrdquo

ldquoThe Group will continue to adopt the fair value model for investment propertiesrdquo

ldquoThe change in fair value of investment properties will cause volatility in the profit and loss accountrdquo





For the 6-month 3062005 2005HK$rsquoM


2004HK$rsquoM

562407

See a latest and actual case helliphellip




investment properties 2799 -

Profit is even higher than the revenue


695695

CaseCase

26



Interim Report 2005 stated that

Six months ended 30 June (HK$rsquo000) 2005 2004

Revenue 1563020 1280895Profit before tax 2783792 17635714781478

Once again profit is even higher than the revenue

Fair value changes on investment properties 2500169 -Profit before tax without HKAS 40 (by estimate) 283623 176357

CaseCase


bull Introduce transfer section (but is similar to those in SSAP 17 before)bull Transfers to or from investment property shall be made when and only

when there is a change in use evidenced by

Measurement at transferMeasurement at transfer

a) Commencement of owner-occupation

b) Commencement of development with a view to sale

Change in use Transfer from investment property

a) End of owner-occupation

b) Commencement of an operating lease to another party

c) End of construction or development

Change in use Transfer to investment property

Depend on the model the entity is using helliphellip

Owner-Occupied Property


InventoriesInventoriesInvestment

PropertyInvestment

Property

Investment Property

Investment Property



InventoriesInventories

End of construction

End of construction

5 Transfer

27


bull When an entity uses rarrndash transfers DO NOT change the carrying amount of the property

transferred andndash they DO NOT change the cost of that property for measurement or

disclosure purposes



5 Transfer



bull For a transfer from investment property (ie the following cases) carriedat fair value


the propertyrsquos deemed cost for subsequent accounting in accordance with HKAS 16 or HKAS 2 shall be its fair value at the date of change in use







PropertyInvestment

Property

5 Transfer

28


5 Transfer

bull GV has adopted HKAS 40 and stated its investment properties at fair value even the properties are held under operating leases

bull On 1 Jan 2005 GVrsquos investment property A held under operating lease was stated at fair value of $1000 Its original cost was $800

bull On 10 Feb 2005 the lease of property A expired and GV decided and began to hold it as its office

bull What is the accounting implication on the decision

ExampleExample

bull Property A would no longer be investment property and would be reclassified as owner-occupied property

bull Even property A is held under operating lease such operating lease interest would still be accounted for as a finance lease continuously in accordance with HKAS 17 and classified and measured as propertyplant and equipment in accordance with HKAS 16

bull The fair value at the date of change in use ie 10 Feb 2005 will be regarded as the deemed cost in property plant and equipment






bull For a transfer to investment property (ie the following cases) and that investment property will be carried at fair value






Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29


rArr Revaluation reserve is bull frozen andbull accounted for in

accordance withHKAS 16 subsequently

Investment Property

Investment Property




5 Transfer


apply HKAS 16 up to the date of change in usetreat any difference at that date between its bull carrying amount under HKAS 16 andbull its fair value

in the same way as a revaluation under HKAS 16


any difference betweenbull the fair value of the property

at that date andbull its previous carrying amount

shall be recognised in profitloss


PropertyInvestment

PropertyEnd of construction

End of construction


5 Transferbull GV has adopted HKAS 40 and stated its investment properties at fair

value even the properties are held under operating leasesbull On 1 Mar 2005 freehold property B stated at revalued amount of

$1000 (originally used as its own office) has been leased out to derive rental income Revaluation surplus recognised for B was $300 while Brsquos fair value at that date should be $1200


ExampleExample

bull Property B would be reclassified as investment propertybull In accordance with HKAS 40 GV should apply HKAS 16 on B up to the

date of change in use and treat any difference at that date between its carrying amount under HKAS 16 and its fair value in the same way as a revaluation under HKAS 16bull Thus a revaluation surplus of $200 would be further recognisedbull Total revaluation reserves would become $500 ($200 + $300)

bull The revaluation reserves of $500 would be frozen and accounted for in accordance with HKAS 16 subsequently




30


6 Derecognition (or Disposals)

bull An investment property shall be derecognised (eliminated from the balance sheet)1 on disposal or2 when the investment property is permanently withdrawn from use

and no future economic benefits are expected from its disposalbull Gains or losses arising from the retirement or disposal of investment

property shall be determined as the difference between1 the net disposal proceeds and2 the carrying amount of the asset

and shall be recognised in profit or loss (unless HKAS 17 requires otherwise on a sale and leaseback) in the period of the retirement or disposal


7 Disclosure

a) Disclosure for both Fair Value Model and Cost Modelbull whether the fair value model or the cost model is adoptedbull if fair value model is applied whether property interests held under

operating leases are accounted for as investment property bull if classification is difficult the criteria to distinguish investment property

from owner-occupied property and from property held for sale in the ordinary course of business

bull the methods and significant assumptions applied in determining the fair value of investment property

bull whether (and the extent to which) the fair value of investment property is based on a valuation by a qualified independent valuer

bull the amounts recognised in profit or loss say for rental income from investment property and direct operating expenses (including repairs and maintenance) arising from investment property

bull the existence and amount of restrictions on the realisability of investment property or the remittance of income and proceeds of disposal

bull contractual obligations to purchase construct or develop investment property or for repairs maintenance or enhancements

31


7 Disclosure

b) Additional Disclosure for Fair Value Modelbull A reconciliation between the carrying amounts of investment property at

the beginning and end of the period similar to that of property plant and equipment

bull When a valuation obtained for investment property is adjusted significantly for the purpose of the financial statements the entity shall disclose a reconciliation between the valuation obtained and the adjusted valuation included in the financial statements

bull In the exceptional cases when there is inability to determine fair value reliably and cost model is applied to a particular investment property additional disclosures are required


7 Disclosure

c) Additional Disclosure for Cost Modelbull the depreciation methods used bull the useful lives or the depreciation rates usedbull the gross carrying amount and the accumulated depreciation (aggregated

with accumulated impairment losses) at the beginning and end of the periodbull a reconciliation of the carrying amount of investment property at the

beginning and end of the period similar to that of property plant and equipment

bull the fair value of investment propertybull In the exceptional cases when there is inability to determine fair value

reliably additional disclosures are required

32


Adopted rarrbull Deem the carrying amount of an investment property immediately

before the applying HKAS 40 on its effective date (or earlier) as its costndash Any adjustments shall be made to the opening balance of retained earnings

for the period in which HKAS 40 is first appliedndash Depreciation on deemed cost commences from the time at which HKAS 40

is first applied

Adopted rarrbull Opening balance of retained earnings shall be adjustedbull Comparative information

ndash Entities previously disclosed the propertyrsquos fair valuerArr encourage (but not require) to restate comparative information

ndash Entities NOT previously disclosed the propertyrsquos fair valuerArr shall NOT restate comparative informationrArr shall disclose this fact

8 Transitional Arrangements



Example listed co

Example unlisted co charities

Included the charities taken exemption of SSAP 13 before






The change in fair value of investment properties will cause volatility in the profit and loss accountrdquo

ldquoOn transition the investment revaluation reserve will be transferred to retained profitsrdquo

ldquoThe Group will not restate its 2004 accounts as permitted under paragraph 80 of HKAS 40rdquo

8 Transitional ArrangementsCaseCase

33


bull As a result of the adoption of HKAS 40ndash the Grouprsquos net profit attributable to ordinary shareholders has increased

by $51361 million (2004 $30350 million) andndash the net assets as at the year has increased by $1289 million (2004

$1300 million)bull These changes in accounting policies have been adopted

retrospectively with the opening balances of retained profits and reserves and the comparative information adjustedndash for the amounts relating to prior periods as disclosed in the consolidated

statement of changes in equity and note 23 of the accounts


bull Hang Lung Properties adopted a different transitional treatment from Hang Seng Bank



Interim Report 2005 stated thatbull Hotel properties

bull In previous periods the Grouprsquos self-operated hotel properties were carried at revalued amounts and were not subject to depreciation

bull HK Interpretation 2 requires owner-operated properties to be classified as property plant and equipment in accordance with HKAS 16 helliphellip

bull The Group has resolved to account for their hotel properties using the cost model

bull In the absence of any specific transitional provisions in HK Interpretation 2 the new accounting policy has been applied retrospectively

bull Comparative figures have been restated (See Note 3 for the financial impact)

CaseCase

34




Six months ended 30 June (HK$rsquo000) 2005 2004Note 3 to the interim reportbull Increase in depreciation arising from

reclassification of hotel properties and owner-occupied properties to PPE 73245 50767

Condensed consolidated income statementbull Profit before tax (without fair value changes on

investment properties) 283623 176357

Percentage to the above profit 258 288

CaseCase



Beijing Enterprises Holdings LimitedBeijing Enterprises Holdings Limitedbull Has early adopted all the new HKFRS in 2004 Annual

Report

bull Transitional arrangement on hotel properties

ndash In the absence of any specific transitional requirements in HKAS 16 HKAS 40 and SSAP-Int 23 the new accounting policy has been applied retrospectively

ndash The comparative statements for the year ended 31 Dec 2003 have been restated to conform to the new policy

CaseCase

35


Thatrsquos all helliphellip

bull HK(SIC) Interpretation 21

bull Practical application


HK(SIC) Interpretation 21

Tax Base

Temporary Difference

Carrying Amount

36


Income Tax ndash Recovery ofRevalued Non-Depreciable Assets

1 Issue2 Basis for Conclusions3 Conclusions4 Implication to Property in HK 5 Effective Date


1 Issue

bull Under HKAS 1251 the measurement of deferred tax liabilities and assets should reflectndash the tax consequences that would follow from the manner in whichndash the entity expects at the balance sheet date to recover or settle the

carrying amount of those assets and liabilities that give rise to temporary differences

Recover through usage

Recover from sale

37


1 Issue

bull HKAS 1220 notes thatndash the revaluation of an asset does not always affect taxable profit (tax loss) in

the period of the revaluation andndash that the tax base of the asset may not be adjusted as a result of the

revaluationbull If the future recovery of the carrying amount will be taxable

ndash any difference betweenbull the carrying amount of the revalued asset andbull its tax base

is a temporary difference and gives rise to a deferred tax liability or asset


Implied thatbull an investment property if under HKAS 16

would be depreciable like land in HKbull the conclusion in HK(SIC) Interpretation

21 is not applicable to that property

1 Issue

bull The issue is how to interpret the term ldquorecoveryrdquo in relation to an asset thatndash is not depreciated (non-depreciable asset) andndash is revalued under the revaluation model of HKAS 16 (HKAS 1631)

bull HK(SIC) Interpretation 21ldquoalso applies to investment properties whichndash are carried at revalued

amounts under HKAS 4033ndash but would be considered non-

depreciable if HKAS 16 were to be appliedrdquo

bull Interpretation 20 (superseded)ldquoalso applies to investment properties whichndash are carried at revalued

amounts under SSAP 13rdquo

38


2 Basis for Conclusions

bull The Framework indicates that an entity recognises an asset if it is probable that the future economic benefits associated with the asset will flow to the entity

bull Generally those future economic benefits will be derived (and therefore the carrying amount of an asset will be recovered)ndash through salendash through use orndash through use and subsequent sale

Recover through use

and sale

Recover from sale




bull Recognition of depreciation implies thatndash the carrying amount of a depreciable asset is

expected to be recoveredbull through use to the extent of its depreciable

amount andbull through sale at its residual value

Recovered through use (and final sale)


Depreciable asset

Depreciable asset

Recovered through saleRecovered

through sale

Non-depreciable

asset

Non-depreciable

asset

bull Consistent with this the carrying amount of anon-depreciable asset such as land having an unlimited life will bendash recovered only through sale

bull That is because the asset is not depreciatedndash no part of its carrying amount is expected to be recovered (that is consumed)

through usebull Deferred taxes associated with the non-depreciable asset reflect the tax

consequences of selling the asset

39



bull The expected manner of recovery is not predicated on the basis of measuringthe carrying amount of the assetndash For example if the carrying amount of a

non-depreciable asset is measured at its value in use

bull the basis of measurement does not imply that the carrying amount of the asset is expected to be recovered through use but through its residual value upon ultimate disposal



Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions

bull The deferred tax liability or asset that arises from the revaluation of a non-depreciable asset under the revaluation model of HKAS 16 (HKAS 1631) should be measuredndash on the basis of the tax consequences that would follow from recovery of the

carrying amount of that asset through salebull regardless of the basis of measuring the carrying amount of that asset

No depreciation impliesnot expected to recover from usage

40


3 Conclusions

bull Accordingly if the tax law specifiesndash a tax rate applicable to the taxable amount derived from the sale of an assetndash that differs from the tax rate applicable to the taxable amount derived from

using an assetthe former rate is applied in measuring the deferred tax liability or asset related to a non-depreciable asset

Tax rate on saleTax rate on sale Tax rate on usageTax rate on usageNot the same

Used for non-depreciable asset Whatrsquos the implication on land in HK


4 Implication to Property in HK

bull Remember the scope identified in issue before helliphellip









41





bull It implies thatndash the management cannot rely on HK(SIC) Interpretation 21 to

assume the tax consequences being recovered from salendash It has to consider which tax consequences that would follow

from the manner in which the entity expects to recover the carrying amount of the investment property

bull As an investment property is generally held to earn rentalsndash the profits tax rate would best reflect the tax

consequences of an investment property in HKndash unless the management has a definite intention to dispose of

the investment property in future

Different from the past in most casesDifferent from the past in most cases



bull The early adoption of HKAS-INT 21 has resulted in a change in accounting policy relating to deferred taxation of the Grouprsquos investment property

bull Prior to this deferred tax arising from the revaluation of investment property was calculated on the basis that the property was held for sale

bull In accordance with the provisions of HKAS-INT 21 the deferred tax arising from the revaluation of the property should be recalculated as if the investment property is held through use and charged to the profit and loss account

2004 Annual Report HKEX

CaseCase

42




CaseCase

bull The directors consider it inappropriate for the company to adopt two particular aspects of the newrevised HKFRSs as these would result in the financial statements in the view of the directors eitherbull not reflecting the commercial substance of the business orbull being subject to significant potential short-term volatility as explained

below helliphellip


4 Implication to Property in HKCaseCase

bull HKAS 12 ldquoIncome Taxesrdquo together with HKAS-INT 21 ldquoIncome Taxes ndashRecovery of Revalued Non-Depreciable Assetsrdquo requires deferred taxation to be recognised on any revaluation movements on investment properties

bull It is further provided that any such deferred tax liability should be calculated at the profits tax rate in the case of assets which the management has no definite intention to sell

bull The company has not made such provision in respect of its HK investment properties since the directors consider that such provision would result in the financial statements not reflecting the commercial substance of the businesssince should any such sale eventuate any gain would be regarded as capital in nature and would not be subject to any tax in HK

bull Should this aspect of HKAS 12 have been adopted deferred tax liabilities amounting to HK$2008 million on the revaluation surpluses arising from revaluation of HK investment properties would have been provided(estimate - over 12 of the net assets at 30 June 2005)


However 2005 Final Results Announcement disclosed that provision for deferred tax was finally made with regard to revaluation of the HK investment properties (total HK$22 billion) at 2005 year-end

However However 2005 Final Results 2005 Final Results AnnouncementAnnouncement disclosed that disclosed that provision for deferred tax was finally provision for deferred tax was finally made with regard to revaluation of made with regard to revaluation of the HK investment properties (total the HK investment properties (total HK$22 billion) at 2005 yearHK$22 billion) at 2005 year--endend

43



bull In prior years the group was required to apply the tax rate that would be applicable to the sale of investment properties to determine whether any amounts of deferred tax should be recognised on the revaluation of investment propertiesbull Consequently deferred tax was only provided to the extent that tax

allowances already given would be clawed back if the properties were disposed of at their carrying value as there would be no additional tax payable on disposal

bull As from 1 January 2005 in accordance with HK(SIC) Interpretation 21 the group recognises deferred tax on movements in the value of an investment property using tax rates that are applicable to the propertyrsquos use if the group has no intention to sell it and the property would have been depreciable had the group not adopted the fair value model helliphellip

2006 Annual Report stated that2006 Annual Report stated that



2005 Interim Report stated the following for deferred taxes related to investment propertiesbull In previous periods deferred tax consequences in respect of revalued

investment properties were assessed on the basis of the tax consequence that would follow from recovery of the carrying amount of the properties through sale in accordance with the predecessor interpretation (SSAP-Interpretation 20)

bull In the current period the Group has applied HKAS Interpretation 21 (ldquoINT-21rdquo) ldquoIncome Taxes - Recovery of Revalued Non-Depreciable Assetsrdquo whichbull removes the presumption that the carrying amount of investment

properties are to be recovered through sale

CaseCase

44



2005 Interim Report stated the following for deferred taxes related to investment properties

CaseCase

bull Therefore the deferred tax consequences of the investment properties are now assessed on the basis that reflect the tax consequences that would follow from the manner in which the Group expects to recover the property at each balance sheet date

bull In the absence of any specific transitional provisions in HKAS INT-21 this change in accounting policy has been applied retrospectively Comparative figures for 2004 have been restated hellip

bull Out of deferred taxation of HK$2490 million approximately HK$1913 million was provided in respect of the revaluation surplus of the Grouprsquos Hong Kong investment properties

bull Notwithstanding this provision it is considered that profit on the disposal of such properties should not be taxable as there is currently no capital gains tax in Hong Kong


4 Effective Date

bull HK(SIC) Interpretation 21 becomes effective for annual accounting periods beginning on or after 1 Jan 2005

bull Earlier application is encouragedbull Changes in accounting policies should be

accounted for in accordance with HKAS 8ndash ie by using retrospective application

bull HK(SIC) Interpretation 21 supersedes Interpretation 20 Income taxes ndash Recovery of Revalued Non-Depreciable Assets

45








bull As stated before when a property interest held by a lessee under an operating lease is classified as an investment propertyrArr the fair value model must be applied for all

investment propertiesrArr a gain or loss arising from a change in the fair

value of investment property shall be recognised in profit or loss for the period in which it arises


Since the land element of an property in HK can only be held under ldquooperating leasesrdquo (per HKAS 17) does it imply thatbull There is no choice for all investment properties in HKbull All such properties shall use Fair Value Model With all

resulting gain or loss recognised in profit or lossbull Alternatively they can only accounted for as operating

leases in accordance with HKAS 17




46


Building only

Building only

Recap on HKAS 17Recap on HKAS 17

New requirements with significant impact mainly helliphellip

Separate measurement

(of the land and buildings elements)



Land onlyLand only

Land and Building

Land and Building

2 Introducing several new paragraphs1 Deleting one sentence



bull As before lease classification is madendash at the inception of the leasendash leases of land and buildings are classified as operating or finance

leasesin the same way as leases of other assets

Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease

Title passed tothe lessee

Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease

Lease of land and buildingsLease of land and buildings

If a lease contains land and buildingselements

2 elements are considered separately for lease classification

If title of both elements is expected to pass to the lessee

Both elements are classified as finance lease

Lease of landLease of land

If title of land or both elements is NOT expected to pass to the lessee

The land element alone is normally classified as an operating leaseThe building element is considered separately




bull To classify and account for a lease of land and buildingsbull the minimum lease payments (including any lump-sum upfront payments)

are allocated between the land and the buildings elementsbull in proportion to the relative fair values of the leasehold interests in the land

element and buildings element of the lease at the inception of the leasebull If the lease payments cannot be allocated reliably between the 2

elementsbull the entire lease is classified as a finance leasebull unless it is clear that both elements are operating leases

in which case the entire lease is classified as an operating leasebull For a lease of land and building if the land is immaterial

bull The lease may be treated as a single unit andclassified as finance or operating leases Building

onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


Can land and building be reliably separated

No

No

Yes

Minimum lease payment allocated in proportion to the relative fair values of land and building elements




Complicated by HKAS 17 since land is only held under operating lease







Can the lease of land and building be reliably separated

Cannot be reliably separated

Reliably separated

49



The entire lease is accounted for as a finance lease (under HKAS 17)If the definition of investment property under HKAS 40 is fulfilled HKAS 40 must be followed and either one of the following models can be chosenbull Cost Model bull Fair Value Model




Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model

Fair Value Fair Value ModelModel

CostModelCostCost

ModelModel

SimpleSimple



Land (and building) under operating leaseChoose to eitherbull HKAS 17bull HKAS 40

(using Operating Lease IP Alternative)




Reliably separated

LandLand

Operating Lease

Operating Lease

At CostAt CostAt Cost Fair Value Model


CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Building under finance leaseHKAS 40 must be followed and either one of the following models can be chosenbull Cost Model bull Fair Value Model

Building under finance leaseHKAS 40 must be followed and either one of the following models can be chosenbull Cost Model bull Fair Value Model Be careful helliphellip

Under HKAS 17

Under HKAS 40

50



If land is accounted for under HKAS 40 by using Operating Lease IP Alternativebull all the investment properties

must be accounted for by using Fair Value Model

bull no choice for all investment properties then





Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease

LandLandBuildingBuilding

Operating Lease

Operating Lease


Reliably separated

Fair Value Model

Fair Value Fair Value ModelModel At CostAt CostAt Cost

Under HKAS 17

Under HKAS 40

Choice under HKAS 40 exists only if land is not accounted for as investment property


51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModelFair Value

ModelFair Value Fair Value

ModelModel At CostAt CostAt Cost Fair Value Model


Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip

Fair value is still needed for all investment properties helliphellip for disclosure purpose

But helliphellip


bull No matter which model you have chosen it is alwaysa ldquoFair Value Modelrdquo

bull The difference is - Recognised or Disclosedbull The difference is - to PL or in Notes

52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model


For simplicity just adopt Fair Value Model or helliphellipshould be termed asldquoRecognisedrdquo Fair Value Model


ldquoInvestment properties are properties held for long-term rental yieldsrdquo

ldquoInvestment properties are carried at fair value representing open market value determined annually by independent qualified valuersrdquo

ldquoChanges in fair values are recorded in the consolidated profit and loss accountrdquo

ldquoIn accordance with IAS 40 (revised) leasehold properties held for long-term rental yields are classified as investment properties and carried at fair valuerdquo

ldquoInvestment properties are properties held for long-term rental yieldsrdquorArr definition (andor for capital appreciation)


rArr adopt Fair Value Model (Recognised) with independent revaluation

ldquoChanges in fair values are recorded in the consolidated profit and loss accountrdquo rArr changes in fair value recognised in PL

ldquoIn accordance with IAS 40 (revised) leasehold properties held for long-term rental yields are classified as investment properties and carried at fair valuerdquo rArr same as the requirement in HKAS 4075(b)

JardinesJardines Group Group (2005 Annual Report)

Application of HKAS 40 in HKCaseCase

53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

Any element held under lease

Whether the element can be reliably separated

Choose the available options



Property for own use


FinanceLease

FinanceLease

Revaluation Model

Revaluation Revaluation ModelModel

CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease

Fair Value ModelFair Value ModelFair Value Model

CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40

Land and building cannot be reliably separated

54


Application of HKAS 40 in HKApplication of HKAS 40 in HKLand and buildingcan be reliably separated



Investment property

Investment property


Finance LeaseFinance Lease Operating LeaseOperating Lease

CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel

Fair ValueFair ValueModelModel

1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16

Under HKAS 40 Under HKAS 17

Under HKAS 40

More companies have argued helliphellipMore companies More companies have argued helliphelliphave argued helliphellip

Disclose fair value



Annual Report 2005bull In the opinion of the directors the lease payments

of the Group cannot be allocated reliably between the land and building elements therefore the entire lease payments are included in the cost of land and building and are amortised over the shorter of the lease terms and useful lives

CaseCase

Annual Report 2005bull As the Grouprsquos lease payments cannot be

allocated reliably between the land and buildings elements the entire lease payments are included in the cost of the land and buildings as a finance lease in property plant and equipment

bull The adoption of HKAS 17 has not resulted in any change in the measurement of the Grouprsquos land and buildings

55


Application of HKAS 40 in HKApplication of HKAS 40 in HKCaseCase

Accounting policy on land use right (annual report 2005)bull Land use rights are recognised initially at lsquocostrsquo

ndash being the consideration paid for the rights to use and occupy the landbull Land use rights are amortised

ndash using the straight-line method to write off the cost over their estimated useful lives of 30 to 70 years

bull Land use rights are not separately presented from building whenndash they are acquired together with the building at inception andndash the costs attributable to the land use rights cannot be reasonably

measured and separated from that of the building


Application of HKAS 40 in HKApplication of HKAS 40 in HKExampleExample

bull PPE can be carried at cost model if eitherndash The lease of land and building cannot be reliably allocated between

land and building elementbull The whole lease will be

ndash classified as finance lease (other than exception case) andndash then accounted for at cost model under HKAS 16 or

ndash The lease of land and building can be reliably allocated between land and buildingbull The land is carried at amortised cost under HKAS 17bull The building is carried at cost model under HKAS 16

bull Can PPE or Investment Property in HK or PRC be carried at cost model after the adoption of HKAS 17 and HKAS 40


56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40



Property for own use LandLandBuildingBuilding


CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel


Land and buildingcan be reliably separated


Annual Report 2005bull In the current year the Group has applied HKAS 17 ldquoLeasesrdquo bull Under HKAS 17 the land and buildings elements of a lease of land and

buildings are considered separately for the purposes of lease classification

ndash unless the lease payments cannot be allocated reliably between the land and buildings elements

ndash in which case the entire lease is generally treated as a finance lease helliphellipndash where the allocation between the land and buildings elements cannot be

made reliably the leasehold interests in land continue to be accounted for as property plant and equipment


57



bull Investment Property can be carried at cost model if eitherndash The lease of land and building cannot be reliably allocated between








FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property

Disclose fair value on which

element

Disclose fair Disclose fair value on which value on which

elementelement

58


Summary of HKAS 40CaseCase

bull Upon adoption of HKAS 40 as from 1 January 2005 the group has adopted a new policy for investment properties

bull Under this new policybull all changes in the fair value of investment properties are recognised directly

in the income statement in accordance with the fair value model in HKAS 40

bull land held for an undetermined future purpose is recognised as investment propertybull if the property is freehold orbull if the property is leasehold the group has chosen to recognise such land

as investment property rather than as land held under an operating lease and

bull golf courses are classified as properties plant and equipment and are stated at cost less accumulated depreciation and impairment losses helliphellip




Nelson Lam Nelson Lam 林智遠林智遠nelsonnelsoncpacomhkwwwnelsoncpacomhk

Full set of slides in PDF can be found in wwwNelsonCPAcomhk

59


QampA SessionQampA SessionQampA Session


Nelson LamNelson Lam 林智遠林智遠nelsonnelsoncpacomhkwwwnelsoncpacomhk


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[1 1 1 1] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects false PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped Unknown Description ltlt FRA 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2



MTR Corporation LtdMTR Corporation Ltd statedbull The adoption of HKAS 40 would require all

revaluation gains or losses of investment properties to be taken directly to the profit and loss account hellip

bull The volatility of property prices therefore could have significant impact on the level and consistency of the Companyrsquos future operating profits

(2004 Annual Report)

CaseCase






2005HK$rsquoM12505176

561561


2006HK$rsquoM12683798

2727

Profit is constantly higher than the revenue

3






2005HK$rsquoM2275

7857384



2006HK$rsquoM4764

9249063




HKAS 40HKAS 40

Todayrsquos Agenda








4






7 Disclosure


5 Transfers








2 Definitions









5





























6

















ExampleExample









7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59






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 ITA 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 NOR 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 SVE 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 gtgtgtgt setdistillerparamsltlt HWResolution [2400 2400] PageSize [612000 792000]gtgt setpagedevice

3






2005HK$rsquoM2275

7857384



2006HK$rsquoM4764

9249063




HKAS 40HKAS 40

Todayrsquos Agenda








4






7 Disclosure


5 Transfers








2 Definitions









5





























6

















ExampleExample









7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







4






7 Disclosure


5 Transfers








2 Definitions









5





























6

















ExampleExample









7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







5





























6

















ExampleExample









7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







6

















ExampleExample









7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







7












ExampleExample



HKAS 16 amp 17

8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







8








CaseCase






Investment Property

Investment Property





9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







9




Cash Flow





Investment Property

Investment Property




Investment Property

Investment Property















investment property

10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







10

























11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







11















CaseCase











12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







12







2323

CaseCase








sold separately



13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







13






















14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







14








ExampleExample


Yes No

Yes No

Yes No

Yes Yes








15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







15



























16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







16









HKAS 16 andHKAS 38


HKAS 38


But not required if















17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







17




















and




18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







18











and










19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







19





investment property

ExampleExample


















20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







20




CaseCase










21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







21
















22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







22















property

23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







23
















fair value model

24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







24


















25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







25













2004HK$rsquoM

562407








695695

CaseCase

26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







26








CaseCase
















PropertyInvestment

Property

Investment Property

Investment Property




End of construction

End of construction

5 Transfer

27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







27




disclosure purposes



5 Transfer












PropertyInvestment

Property

5 Transfer

28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







28


5 Transfer





ExampleExample















Investment Property

Investment Property




End of construction

End of construction

5 Transfer

29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







29




Investment Property

Investment Property




5 Transfer









PropertyInvestment


End of construction






ExampleExample







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







30








7 Disclosure









31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







31


7 Disclosure






7 Disclosure






32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







32





is first applied







Example listed co












33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







33

















CaseCase

34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







34









CaseCase




Report




CaseCase

35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







35







Tax Base


Carrying Amount

36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







36





1 Issue




Recover from sale

37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







37


1 Issue










1 Issue







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







38





Recover through use

and sale

Recover from sale









Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset





39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







39








Depreciable asset

Depreciable asset


through sale

Non-depreciable

asset

Non-depreciable

asset


Recover through use

and sale

Recover from sale


3 Conclusions




40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







40


3 Conclusions
















41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







41


















CaseCase

42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







42




CaseCase


below helliphellip










43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







43













CaseCase

44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







44




CaseCase






4 Effective Date





45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







45


















46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







46


Building only

Building only







Land onlyLand only

Land and Building

Land and Building






Building only

Building only

Land onlyLand only

47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







47



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease


















onlyBuilding

only

Land onlyLand only

48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







48



FinanceLease

FinanceLease


Yes

LandLand

No

BuildingBuilding

Operating Lease

Operating Lease



No

No

Yes














Reliably separated

49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







49







Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost

ModelModel

SimpleSimple








Reliably separated

LandLand

Operating Lease

Operating Lease



CostModelCostCost

ModelModel

FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model




Under HKAS 17

Under HKAS 40

50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







50










Reliably separated

LandLand

Operating Lease

Operating Lease

Fair Value Model


FinanceLease

FinanceLease

BuildingBuilding

Fair Value Model


Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease


Reliably separated

Fair Value Model


Under HKAS 17

Under HKAS 40



51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







51


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40

But helliphellip


But helliphellip




52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







52



FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


Fair Value Model


Fair Value Model















53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







53


CostModelCostCost

ModelModel


FinanceLease

FinanceLease


Operating Lease

Operating Lease



Reliably separated

Land and Building

Land and Building

FinanceLease

FinanceLease

Fair Value Model


CostModelCostCost





Under HKAS 17

Under HKAS 40

Under HKAS 40








FinanceLease

FinanceLease

Revaluation Model


CostModelCostCost

ModelModel

Investment property

Investment property

FinanceLease

FinanceLease


CostModelCostCost

ModelModel

Under HKAS 16

Under HKAS 40


54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







54





Investment property

Investment property



CostModelCostCost

ModelModel

Revaluation Model


CostModelCostCost

ModelModel

CostModelCostCost

ModelModel

CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel

Fair Value Model


CostModelCostCost

ModelModel

Fair Value Model


Fair ValueModel


1st Choice

2nd Choice

1st Choice

2nd Choice

3rd Choice

Under HKAS 16


Under HKAS 40


Disclose fair value





CaseCase




55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







55
















56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







56





FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40





CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel










57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







57











FinanceLease

FinanceLease

CostModelCostCost

ModelModelUnder

HKAS 40


Investment property

Investment property



CostModelCostCost

ModelModelCost

ModelCostCost

ModelModel



Investment property

Investment property


element


elementelement

58














59







58














59







59







investment property - nelson cpa · • introduce cost model, ... investment property is property...

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