IAS 40 vs IAS 16

Question

Under IAS40 the standard stated that if a land is held for undecided use, then it should be classified as Investment Property. Then what about "Buildings eg Condominium/High rise" held for undecided use(Vacant)? Should it be classified under IAS 16 or IAS 40 ? since the standard is ambiguous about this area.

Answer 1

Only LAND held for undetermined future use will fall under investment property. IAS 40 believes that buildings can not be held for undetermined future use. Usually, the future use of a building is known. It is incorrect to classify all assets other than IP under IAS 40 to be falling under IAS 16  (condominium/high rise).

For example: A property that is held for sale in the ordinary course of business (E.g. Buildings - Condominium/High rise) are inventory under IAS 2.