Importance The article discusses the specifics of accounting for investment property under the Russian Accounting Standards (RAS) and compares it with IAS 40 – Investment Property, IAS 16 – Property, Plant and Equipment and IFRS 16 – Lease. Objectives I outline the draft balance sheet with a new classification of investment property items. Methods The research employs an institutional technique based on the analysis of the regulatory framework, which sets forth accounting and financial reporting requirements to fixed assets and income-bearing investment in tangible assets. I also compare investment property valuation methods in the RAS and IFRS. Results I outlined the draft section Non-Current Assets of the balance sheet, which classifies investment property items. The items are reclassified through IAS 40 Investment Property. Conclusions and Relevance I devised a new reclassification of fixed assets and income-bearing investment in tangible assets, thus pursuing the convergence of the Russian and international financial reporting standards. The classification will facilitate the financial reporting processes in terms of transformation since the proposed grouping of fixed assets in the Russian balance sheet is as close as possible to the format prescribed by IFRS. The findings may be used by accountants to prepare the statement of financial position for profit-making entities, transform the financial statement and deliver lectures on IFRS. The proposed reclassification will help optimize the transformation of the Russian financial statements into the IFRS format.
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