Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
The Property Management Committee (IFA) has adopted the IDW Statement on Accounting: Recognition of real estate as fixed and current assets in annual financial statements under commercial law (IDW RS IFA 3).
IDW RS IFA 3 contains principles for distinguishing fixed asset properties from current asset properties, for reporting so-called construction preparation costs and costs incurred during the construction or extensive renovation or modernisation of buildings. The publication also addresses recognition issues in the event of the sale of a property.
IDW RS IFA 3 is to be applied for the first time to financial statements for financial years beginning after 31 December 2022. Earlier application is permitted.
The adoption of IDW RS IFA 3 was announced in an announcement on the IDW website. The announcement was published in issue 4/2023 of IDW Life.