 Today's topic is investment property. Investment property, basically, we have already discussed property, plant and equipment, but today is specifically out of all other properties, the investment property we are going to discuss. Now, the learning outcome, students will be able to understand what is meant by the term investment property as per IES 40. Able to calculate the value of investment property and learn how to incorporate the impact of change in investment property and present it in the financial statement. Now, the objective and scope to prescribe the accounting treatment and disclosure for investment property. The scope includes property held for capital appreciation or to earn rental. It's very clear that you are holding this property, you are buying this property or keeping this property for the purpose of appreciation in value or for rental. Not for use in business. Initial cost recognition, all expenditure made to acquire and plus any directly attributable cost and ready for use are considered part of the property cost. In fact, this definition is the same as per previously we discussed it in property, plant and equipment because whatever we spend to bring an asset for its intended use that is part of the cost of the assets. The purchase price, transfer fee, legal fee, cost incurred to bring the land and its intended use such as guard, grading, filling, draining, cleaning, creating assumptions of any. Now, all these costs are added to the cost of the property. But the other thing is assuming assumption of any lien and mortgage. Do you remember some properties are mortgage, so we should keep in mind that when we are buying such a property, so we are also taking responsibility of that properties liability if there is any. Now, any salvage receipts on cleaning deducted from the cost of property. So if you are cleaning or other putting that property in proper order and you are getting some out of it, whatever scrap you are getting out of it that will be deducted. Do not capitalize any operating laws make marketing expenses and abnormal ways. It's very clear that these three things should not be added to the cost of property. Now, first of all, what is investment property? An investment property is property land and building or part of building or both and it can be just land or it can be building or it can be building and land together. Held by the owner or lessy under finance lease to earn rentals, purposes to earn rental or for capital appreciation or both. You know when you buy a property, there are two motifs either you had to go to in the living that one or put up your office in it or you can give it on rental purpose or you can hold it for appreciation. Appreciation means with time the value of property increases. So that is another motive to hold that property. Rather than clearly use in the production supply of goods and services or for administrative purpose. So you are not buying it for the purpose of using it for goods and services or maybe for administrative purpose. So absolutely you are buying this property for appreciation in value or for rental. Second sale in ordinary course of business. Now you are buying an assets and let's say your job is to build houses and then sell it. So in that case that is not investment property because that is inventory like in PPP we have discussed it. Owners occupied property is a property held by the owner or by the lessy under finance lease for use in production of goods and services or for administrative purposes. So they have discussed that if it is owner owned property that is not investment property property held under operating lease is discussed in the IFR 60. Now the land that is owned by an entity for capital appreciation which may be sold at any time in future. And the land that has no current purpose are both considered to be investment property. For example you acquire a property but currently you don't have any intention what to do about it. It is still an investment property you might sell it later on. If an entity supplements its income by buying and selling property and regularly sell parts of the housing inventory it is treated as stock held for sale will be classified as inventory. So if your business is holding properties, number of plots and you keep selling those plots and buying those plots that is not investment property. That is you are doing that business of property in that case it is treated under PPP IS-2 inventory. The part of property held to provide housing to low income employees at below market rental will not be treated as investment property. Again you know in industry basically we have colonies and we provide housing facilities to the employees and you don't even charge rental which is very nominal. So that also not be treated as investment property. The properties held to provide housing services rather than rental. So that is not investment property. So clearly investment property is one which is hold by the business for appreciation in its value or for giving its own rental. We got even some time simple plot and then we give it for parking purposes. So that is investment property. You don't have any use in your mind what are we going to do about it. But if you just let it for parking lot so it is an investment property. So basically first thing is that you must understand what is the investment property. Thank you very much.