Скачать или смотреть IAS 40 vs Ind AS 40 vs US GAAP – One Clear Comparison Sheet

⚖️ IAS 40 vs Ind AS 40 vs US GAAP – One Clear Comparison Sheet

Investment Property accounting looks simple — until you compare global frameworks.
IFRS allows flexibility. India restricts it. US GAAP goes conservative.
This post explains the differences in one crisp view 👇

In this post, you’ll learn:

✔️ When property qualifies as Investment Property
✔️ Which frameworks allow Fair Value Model
✔️ Why Ind AS 40 is more restrictive than IAS 40
✔️ How US GAAP treats property differently
✔️ A one-glance comparison table + TechInfra example.

Core Idea

All three frameworks agree on the definition:

🏢 Property held to earn rentals or capital appreciation = Investment Property

What changes is how it is measured after recognition.

Standard-wise Rules (Easy Summary)

IAS 40 (IFRS)
✔ Cost Model OR Fair Value Model
✔ Fair Value gains/losses → P&L
✔ No depreciation under fair value model

Ind AS 40 (India)
❌ Fair Value Model not permitted
✔ Only Cost Model allowed
✔ Fair value disclosed in notes only

US GAAP (ASC 360/842)
❌ No Investment Property standard
✔ Treated like PPE under cost model
✔ Depreciation + recoverability impairment tests

📌 Key takeaway — Fair Value through P&L is IFRS-only flexibility.

TechInfra Example (Very relatable)

TechInfra buys a rental building for ₹4 Cr

Framework Treatment Year-end FV = ₹4.4 Cr

IAS 40 FV Model allowed Profit ₹40L → P&L
Ind AS 40 Only Cost Model FV shown only in notes
US GAAP Similar to Ind AS No FV gain recognized

➡️ Only IFRS reflects true market appreciation in books.

Interview Tip 💬

If asked "difference between IAS 40 & Ind AS 40?" — reply like this:

“IFRS allows Fair Value Model with changes to P&L.
Ind AS permits only Cost Model — fair value is disclosure-only.”

This 2-line answer cracks interviews instantly.

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