Cognitive load theory (CLT) has rarely been applied in the area of financial accounting. This research demonstrates that by using CLT, financial accounting and reporting can benefit in the areas of teaching and decision making. The CLT indicates that by reducing the load of complex concepts in the working memory, a more efficient result is obtained from the expected output. A real example on International Accounting Standard (IAS) 40 on Investment Properties (IP) is used to analyze the assimilation of the true and fair view concept. This standard permits the use of either the fair value or cost value model. Additionally, the study examines whether financial presentation formats are relevant for understanding financial information. The main results show that adequate financial presentation formats reduce extraneous load, and where presentation formats cannot be changed, results can be improved by decreasing cognitive load through dedicating more time to teaching the more complex option. This research aims to aid international business education by recommending these findings to standard setters and improving education material.