Investment Properties

Last updated on February 6, 2014

(Updated sections are indicated with an asterisk * )

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective

Due Process Documents

* Summary of Decisions Reached to Date

* Board/Other Public Meeting Dates

Background Information

Contact Information

Project Objective

The objective of this project is to consider whether entities should be provided an option or be required to measure investment property at fair value to align with the IASB the scope of entities that would apply the lessor accounting model developed under the joint leases project. The existing international accounting standard (IAS 40, Investment Property) provides an option.

As part of this project, the Board also plans to address Emerging Issues Task Force (EITF) Issue No. 09-D, Application of Topic 946, Financial ServicesInvestment Companies, by Real Estate Investment Companies.

Due Process Documents

On October 21, 2011, the Board issued a proposed Accounting Standards Update, Real EstateInvestment Property Entities (Topic 973). The comment period ended on February 15, 2012.

• Download the proposed Accounting Standards Update on Investment Property Entities
• Read the news release introducing the proposed Update
• Use the electronic feedback form to provide comments on the proposed Update
• Read the FASB In Focus which summarizes the proposed Update
• Read comment letters received on the proposed Update
• Read the summary of feedback received on the proposed Update

* Summary of Decisions Reached to Date (prior to removal of the project)

The Board discussed various approaches to providing investment property guidance in light of feedback received on the proposed Accounting Standards Update, Real EstateInvestment Property Entities (Topic 973).

The Board decided to evaluate the progress of other projects on its agenda, such as the joint project on leases and the research project on the application of asset- or entity-based guidance to nonfinancial assets held in an entity, before making a final decision on investment property guidance. The Board, however, did tentatively decide to eliminate three of the approaches presented by the staff for future consideration (Alternatives 1, 2, and 4 in the meeting handout were eliminated by the Board). As a result, the investment property entity concept that was proposed in the Exposure Draft would not be part of any future guidance and the real estate investment trust (REIT) scope exception in Topic 946, Financial ServicesInvestment Companies, would be retained for equity REITs. Issues relevant to mortgage REITs will be discussed at a future meeting as part of the investment companies project.

On January 29, 2014, the Board met to prioritize the FASB’s agenda and voted to remove this project from the Board’s agenda.

* Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Boards deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.