Accounting for Investment Properties in Malaysia

Accounting for Investment Properties in Malaysia
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MPERS vs MFRS : Investment Properties

In this article, we share the main differences in the accounting requirements for investment properties under MFRS 140 and Section 16 of MPERS.

Investment Properties

Investment property is property (land or a building – or part of a building – or both) held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation, or both, rather than for:

  • Use in the production or supply of goods or services, or for administrative purposes; or

  • Sale in the ordinary course of operations.

What is the accounting treatment for investment properties?

Section 16 of MPERS - Investment Properties

If the fair value can be measured reliably without undue cost or effort on an ongoing basis, the IP must be measured at the fair value model.

All other IP must be accounted for as property, plant and equipment using the depreciated cost model in Section 17 Property, Plant and Equipment.

MFRS 140 - Investment Properties

Measured at fair value or depreciated cost model


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