
Article 1 
In the Annex to Regulation (EC) No 1126/2008, International Accounting Standard (IAS) 40 Investment Property is amended as set out in the Annex to this Regulation.
Article 2 
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2018.
Article 3 
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 14 March 2018.
For the Commission
The President
Jean-Claude JUNCKER
ANNEX
Transfers of Investment Property 
Paragraphs 57–58 are amended.
 57 

((a)) commencement of owner-occupation, or of development with a view to owner-occupation, for a transfer from investment property to owner-occupied property;
((b)) commencement of development with a view to sale, for a transfer from investment property to inventories;
((c)) end of owner-occupation, for a transfer from owner-occupied property to investment property; and
((d)) inception of an operating lease to another party, for a transfer from inventories to investment property.
((e)) [deleted]
 58 
…

Paragraphs 84C–84E and their related heading, and paragraph 85G, are added.

…
 84C Transfers of Investment Property (Amendments to IAS 40), issued in December 2016, amended paragraphs 57–58. An entity shall apply those amendments to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments (the date of initial application). At the date of initial application, an entity shall reassess the classification of property held at that date and, if applicable, reclassify property applying paragraphs 7–14 to reflect the conditions that exist at that date.
 84D Notwithstanding the requirements in paragraph 84C, an entity is permitted to apply the amendments to paragraphs 57–58 retrospectively in accordance with IAS 8 if, and only if, that is possible without the use of hindsight.
 84E 

((a)) account for the reclassification applying the requirements in paragraphs 59–64. In applying paragraphs 59–64, an entity shall:

((i)) read any reference to the date of change in use as the date of initial application; and
((ii)) recognise any amount that, in accordance with paragraphs 59–64, would have been recognised in profit or loss as an adjustment to the opening balance of retained earnings at the date of initial application.
((b)) disclose the amounts reclassified to, or from, investment property in accordance with paragraph 84C. The entity shall disclose those amounts reclassified as part of the reconciliation of the carrying amount of investment property at the beginning and end of the period as required by paragraphs 76 and 79.

…
 85G Transfers of Investment Property (Amendments to IAS 40), issued in December 2016, amended paragraphs 57–58 and added paragraphs 84C–84E. An entity shall apply those amendments for annual periods beginning on or after 1 January 2018. Earlier application is permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.
