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INVESTMENT PROPERTY
Table of Contents
PAG
Number
BACKGROUND
INTRODUCTION TO THE IPSAS 16
PHILIPPINE APPLICATION GUIDANCE TO IPSAS 16
Scope
Effective Date
Page 1
Background
This Philippine Public Sector Accounting Standard (PPSAS) 16 consists
of International Public Sector Accounting Standard (IPSAS) 16,
Investment Property, and the Philippine Application Guidance (PAG)
prepared to suit the Philippine public sector situation.
The IPSAS 16 was issued in December 2001 and revised in December
2006 by the International Public Sector Accounting Standards Board
(IPSASB) of the International Federation of Accountants (IFAC). This
includes amendments resulting from IPSASs issued up to January 15,
2012.
The PAG (in italics) provides supplementary guidance on the proper
implementation of IPSAS 16.
Introduction to the IPSAS 16
IPSAS 16 prescribes the accounting treatment for investment property
and related disclosure requirements. Investment property shall be
measured initially at cost except when it is acquired through a nonexchange transaction such as donation, or when it pertains to a
property interest held under an operating lease.
After initial
recognition, the entity shall choose either fair value or cost model and
shall apply that valuation policy to all its investment property. At any
case, the fair value shall be determined either for measurement (if the
entity uses the fair value model) or disclosure (if it uses the cost
model).
Philippine Application Guidance to IPSAS 16
Scope
PAG1.Paragraph 3 deals with the applicability of this Standard to all
public sector entities other than Government Business
Enterprises (GBEs).
GBE is an entity that has all the following characteristics: (a) Is
an entity with the power to contract in its own name; (b) Has
been assigned the financial and operational authority to carry on
PPSAS Investment Property
January 2014
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