MPERS vs MFRS : Investment Properties
In this article, we share the main differences in the accounting requirements for investment properties under MFRS 140 and Section 16 of MPERS.
Investment property is property (land or a building – or part of a building – or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation, or both, rather than for:
Use in the production or supply of goods or services, or for administrative purposes; or
Sale in the ordinary course of operations.
What is the accounting treatment for investment properties?
Section 16 of MPERS - Investment Properties
If the fair value can be measured reliably without undue cost or effort on an ongoing basis, the IP must be measured at the fair value model.
All other IP must be accounted for as property, plant and equipment using the depreciated cost model in Section 17 Property, Plant and Equipment.
MFRS 140 - Investment Properties
Measured at fair value or depreciated cost model
Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
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KTP (Audit, Tax, Advisory)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
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A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
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Published : 13-Jun-2022