REAL ESTATE AND IFRS WITH SPECIAL FOCUS ON IAS 40 INVESTMENT PROPERTY

The goal of this paper is to introduce the accounting treatment of real estate according to the International Financial Reporting Standards (IFRS), especially IAS 40 and to analyse, whether companies on the Prague Stock Exchange are using IAS 40 and fulfilling disclosure requirements. Similar research on IAS 40 discloser in other country or research on IFRS disclosers in several counties shows that the quality of discloser differs between the companies and the disclosure requirements are not always met. The complexity of IFRS for real estate makes it difficult for the users to review the financial statements without proper disclosers. The quantitative method used in this paper is to measure how many discloser criteria were met for companies on the Prague Stock Exchange using IAS 40. The key result of this paper is that the fulfilment of the disclosed requirements is very good (100%) for big international companies, such as VIENNA INSURANCE GROUP or ERSTE GROUP BANK AG or for purely real estate company VGP NV (100%). For Czech companies, where the Investment Property is only small part of the balance sheet (1%-15%) the disclosers are not clear or the requirements are not fully met. The result corresponds with the results from other similar papers in other countries.