BC23 The Board received a question regarding the application of paragraph 57, which specifies requirements on transfers to, or from, investment property. The question asked whether an entity transfers property under construction or development previously classified as inventory to investment property when there is evidence of a change in use, even if that evidence is not specifically listed in paragraph 57(a)-(d).

BC24 Paragraph 57 requires transfers to, or from, investment property when, and only when, there is a change in use of property supported by evidence. The Board noted that the words 'when, and only when' in this paragraph are important to ensure that a transfer is limited to situations in which a change in use has occurred. The Board observed that the list of circumstances that provide evidence of a change in use specified in paragraph 57(a)-(d) of IAS 40 was drafted such that it was exhaustive (as shown by the references to 'when and only when' and 'evidenced by' in that paragraph).