OPPORTUNITIES TO APPLY CHANGE IN ACCOUNTING ESTIMATES IN INVESTMENT PROPERTY

The revenue from investment property are important financial information that gives objective indications of the capabilities of the company that uses them. In recent years, there have been constant updates to IAS/IFRS regarding the use of assets in a non-financial corporation in business and practice. The revised Conceptual Framework for Financial Reporting (March 2018) gives priority to the fundamental qualitative characteristic of fair presentation of information in the annual financial statements over quality accuracy, without neglecting the importance of the second. In this document, assets are treated as a present economic resource controlled by the entity as a result of past events, which are expected to generate future economic benefits for the entity. Such an asset is investment property, most often real estate (land or buildings), the accounting treatment of which is governed by NAS/IAS 40 Investment Property. Separate specific events are set out in IAS 16 Non-current Assets, as well as in the relatively new IFRS 16 Leasing.The globalization of financial relations is associated with the need to use a unified accounting framework to represent investment property in the financial statements of non-financial corporations, regardless of whether national or international accounting standards are applied. The practical application of NAS/IAS 40 requires the involvement not only of accounting professionals but also the active involvement of the management of the entity, financiers, lawyers, auditors, appraisers and other professionals.In addition to the general rules and principles for the application of NAS/IAS 40, NAS/IAS 16, IFRS 15 and IFRS 16, the accounting estimates used and the scope for changing them should be addressed. In accounting practice, there is often a mark for equality between the different estimates, without distinguishing between an accounting estimate, an estimate and an accounting judgment.This study proposes exploring the possibilities for applying a change in the applied accounting estimates for investment property, which, due to their diversity and specificity, require the use of differentiating criteria and practical approaches to uniquely define and logically relate the relationships and processes associated with applicable accounting standards (national and international). The purpose of this distinction is to clarify and reduce the uncertainties and contradictions in the practical application of the accounting estimates in the financial statements using accounting and disclosure of information related to investment properties.