A property is classified as investment property if
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A:
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A property is classified as investment property if
Question options:
a |
it is leased out under a finance lease |
b |
the owner-occupied portion of the property is significant. |
c |
the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. |
d |
it is rented between a parent entity and a subsidiary and consolidated financial statements are prepared for the group |
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- If an entity as lessee presents as investment property a property interest held under an operating lease then the entity 1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.1. Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use. d. Property owned by the entity and leased out to another entity under a finance lease. 2. All of the following do not qualify as investment property, except a. Machineries that are held for lease b. Hotels or motels c. Agricultural land purchased for appreciation purposes d. Equipment purchased for an indeterminate purpose 3. A property is classified as investment property if a. it is leased out under a finance lease. b. the owner-occupied portion of the property is significant. c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d. it is rented between a parent entity and a subsidiary and…No.1: answer the following Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use. d. Property owned by the entity and leased out to another entity under a finance lease. All of the following do not qualify as investment property, except a. Machineries that are held for lease b. Hotels or motels c. Agricultural land purchased for appreciation purposes d. Equipment purchased for an indeterminate purpose A property is classified as investment property if a. it is leased out under a finance lease. b. the owner-occupied portion of the property is significant. c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d. it is rented between a parent entity and a…
- which of the following are fixed assets? Financial assets at fair value through profit or loss Interests in and advances to joint ventures, co-venturers and associates Property, plant and equipment Right-of-use assets Investment properties Trademarks, goodwill and other intangible assets Operating lease receivables Finance lease receivables2. Which of the following qualifies for classification as an investment property? a. Property that is currently being developed for future use as investment property b. Property that is leased out to another entity under a finance lease c. Building being rented from another entity and leased out under various operating sub-leases d. Investment property that is currently being developed for future use as owner-occupied property28. If an entity as lessee presents as investment property a property interest held under an operating lease then the entity has the option of measuring some items of investment property using the cost model. shall measure in the financial statement all of its investment property using the fair value models shall measure that leased property interest under O the fair value model and the remaining investmen property using the cost model. shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.
- An investment property is defined as property held to earn rentals or for capital appreciation or both. Which of the following is NOT an investment property? Oa. Land held for undecided future use Ob. Building leased out under an operating lease Oc. Property leased to another entity under a finance lease O d. Land held for long-term capital appreciationWhich of the following is an investment property? Property that is currently being redeveloped to be sold in the ordinary course of business operations. Property that is currently being developed for future use as owner-occupied. Property that is leased out to another entity under a finance lease Building rented out in an operating lease whereby the owner provides minimal services. Which of the following assets may be classified as investment property? Land Building Equipment Land and Building only Intangible asset If ancillary services provided to occupants of a property held are <List A>, the property is classified as <List B> A B a. significant investment property b. insignificant property, plant and equipment (PPE) c. significant allocated to investment property and PPE d. insignificant…MULTIPLE CHOICE 1. Which of the following would be reported as investment property? A. Property owned by the entity and leased out under one or more operating leases B. Property held by the entity to be leased out under one or more operating leases C. Real estate held with an undetermined future use. D. Property owned by the entity and leased out to another entity under a finance lease. 2. Entity A acquires a building through self-construction (construction by administration). The initial costs of the building will most likely be based on which of the following? A. The contract price. B. The costs of direct materials, direct labor and construction overhead, excluding wastages. C. a or b D. fair value at the acquisition date 3. Which of the following is most likely to be recognized as intangible asset by a government entity? A. Internally generated brand B. Subsequent expenditure on copyright C. Development cost incurred in internally generating a patent D. Publishing title acquired…
- Howell Corporation, a publicly traded corporation, is the lessee in a leasing agreement with Brandon Inc. to lease land and a building. If the lease contains a bargain purchase option, Howell should record the land and the building as a(n) a. Operating lease and capital lease, respectively. b. Capital lease and operating lease, respectively. c. Capital lease but recorded as a single unit. d. Capital lease but separately classified.Which one of the following would be recognised as an investment property under IAS 40 in the consolidated financial statements of ABC ltd? A A property intended for sale in the ordinary course of business B A property being constructed for a customer C A property held by BC ltd under a finance lease and leased out under an operating lease D A property owned by BC ltd and leased out to a subsidiaryExplain how an entity would initially and subsequently measure its right-of-use asset and lease liability if the leased asset is classified as investment property under the fair value model? Assuming the fair value of the asset is not given at the end of the period, how will it be best computed? Compare and contrast the lease-related expenses if the entity uses the cost model and fair value model for its right-of-use asset.
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