KK owns the following properties as at 31" December 2017: Property: Fair value Land with future use undetermined GH¢ 3,200,000 Factory rented to KK's subsidiary under an operating lease 2,400,000 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. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK'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 recognized as investment property in KK's consolidated financial statements as at 31 December 2017.

KK owns the following properties as at 31" December 2017: Property: Fair value Land with future use undetermined GH¢ 3,200,000 Factory rented to KK's subsidiary under an operating lease 2,400,000 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. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK'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 recognized as investment property in KK's consolidated financial statements as at 31 December 2017.

Name: KK owns the following properties as at 31st December 2017:Property: F
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Description: KK owns the following properties as at 31st December 2017:Property: Fair valueLand with future use undeterminedGH¢3,200,000Factory rented to KK's subsidiary under an operating lease2,400,00010 floor office building (fair value is equal per floor)wit

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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18
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ABC-EFG