In December 2016, the IASB issued Transfers of Investment Property (Amendments to IAS 40) (the ‘Amendments’) to clarify whether an entity should transfer property under construction of development to, or from, investment property when there is a change in the use of such property which is supported by evidence other than specifically listed in paragraph 57 of IAS 40 Investment Property.

The Amendments become effective for annual periods beginning on or after 1 January 2018, with earlier application permitted. EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG’s recommendation is explained in the letter to the European Commission and the accompanying appendices.

The Endorsement Advice Letter to the European Commission can be found here.

EFRAG has also updated its Endorsement Status Report, which can be downloaded here​ ​on EFRAG’s web page.