Revised IAS 40, effective in 2005, for the first time permits property interests held in the form of operating leases to be classified and accounted for as investment property. This may be done if: (1) the other elements of the definition of investment property are met; (2) the operating lease is accounted for as if it were a finance lease in accordance with IAS 17; (3) the lessee uses the fair value model set out in IAS 40 for the asset recognized. The best way to understand what investment property constitutes is to look at examples of investments that are considered by the standard as investment properties, and contrast these with those investments that do not qualify for this categorization. Investment property will be recognized when it becomes probable that the entity will enjoy the future economic benefits, and when the cost or fair value can be reliably measured.