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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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