Global Standards for the world economy

Wednesday 17 July 2019

Banner graphic

Project news

Project news


The IASB considered the issue and directed the staff to undertake preliminary research on this issue, in particular the scope, to help the IASB to decide how to proceed

 30 July 2014


The IASB considered an issue that had previously been discussed by the Interpretations Committee. The issue was whether an entity should apply IAS 40 Investment Property to account for a structure that lacks the physical characteristics of a building, such as a telecommunication tower, if the entity lets spaces in the tower to tenants to earn rentals.

The Interpretations Committee had questioned whether such a tower qualifies as a ‘building’ because it lacks the features usually associated with a building, such as walls, floors and a roof. However, the Interpretations Committee had expressed general support for broadening the scope of IAS 40 to also include a structure such as a telecommunication tower, but was concerned that the question could also be raised in respect of other structures, such as gas storage tanks and advertising billboards.

The IASB directed the staff to undertake preliminary research on this issue, in particular the scope, to help the IASB to decide how to proceed.

All IASB members agreed with this decision.

Next steps

The IASB will discuss the outcome of the preliminary research in a future meeting.

Read the July IASB Update.