Abstract

The Ability to Measure Real Estate Investments According to the Requirements of IAS 40 in Enhancing the Transparency of Financial Statements

Sarah Abdulmalik Abdulhameed

Volume: 16 Issue: 2 2026

Abstract:

This study seeks to assess the efficiency and feasibility of applying the recognition, measurement, and disclosure requirements set forth in IAS 40 on investment property in enhancing the levels of transparency and reliability of financial information in publicly traded companies. To achieve an objective understanding of the practical application of the standard, the study adopted a quantitative analytical design based on a survey sample consisting of 50 individuals from academic elites, professionals, investors, and financial experts working in relevant sectors, the results of the statistical analysis indicated the existence of strong, positive, and statistically significant correlational and explanatory relationships among the three variables IAS 40 and the quality of financial transparency, concludes that providing fair value information supported by detailed disclosures and a clear methodology contributes to reducing bid-ask spreads and addressing information asymmetry in the market. The study recommends the importance of combining financial measurement techniques with regulatory governance, while activating the roles of external real estate appraisers to ensure the accuracy and reliability of accounting financial estimates and to mitigate managerial biases.

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