b. Courage Hodey Inc. owns the following properties as at 31 December 2019:Property:Fair value (GHémillion)Land with future use undetermined3.2Factory rented to Courage Hodey's subsidiary under an operating lease2.410 floor office building (fair value is equal per floor)with 3 floors used as the subsidiary's head office and seven floorsrented to third parties under an operating lease.15.0Empty building held for capital appreciation, but not leased out.4.1Courage Hodey's accounting policy is to hold its investment properties under the fair value modeland its land and buildings under the revaluation model.Required:In accordance with IAS 40 Investment Property calculate the carrying amount to be recognised asinvestment property in Courage Hodey's consolidated financial statements as at 31 December2019.

According to IAS 40 investment Property,the carrying amount recognized as investment property the…

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Accounting

горerty: and with future use undetermined actory rented to Courage Hodey's sub

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

b. Courage Hodey Inc. owns the following properties as at 31 December 2019:
Property:
Fair value (GHémillion)
Land with future use undetermined
3.2
Factory rented to Courage Hodey's subsidiary under an operating lease
2.4
10 floor office building (fair value is equal per floor)
with 3 floors used as the subsidiary's head office and seven floors
rented to third parties under an operating lease.
15.0
Empty building held for capital appreciation, but not leased out.
4.1
Courage Hodey's accounting policy is to hold its investment properties under the fair value model
and its land and buildings under the revaluation model.
Required:
In accordance with IAS 40 Investment Property calculate the carrying amount to be recognised as
investment property in Courage Hodey's consolidated financial statements as at 31 December
2019.

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