IAS 40 - Investment Property, issued by the International Accounting Standards Board (IASB), outlines the requirements for the recognition, measurement, and disclosure of investment property in financial statements. Investment property refers to real estate (land or buildings) held by an entity not for use in its main operations, but for the purpose of earning rentals or capital appreciation or both.

The standard allows investment property to be measured either at cost, less accumulated depreciation and impairment losses, or using the fair value model, where changes in fair value are recognized in profit or loss. For example, a company owning an apartment complex specifically for generating rental income would classify it as an investment property under IAS 40.

These disclosures improve transparency, allowing users of financial statements to understand the company's investment strategy in real estate and its financial effects. Related terms include 'Fair Value', 'Amortised Cost', and 'Income Statement'.

Proper adoption of IAS 40 ensures consistent treatment of investment properties in line with global accounting practices, aiding stakeholders in assessing the financial standing and performance of the business.