Q Bookworm Co. chose to account for its investment property at fair value. During 2017, Bookworm Co. sold one of its investment properties for €80 million. The fair value of this investment property was €72 million, while its carrying amount on the date of sale was €60 million. How do you determine and recognize the gains or losses resulted from disposals of an investment property carried at fair value? Select the best response, and then click Submit. Gains or losses should be determined as the difference between the fair value and the net disposal proceeds of the asset at the date of disposal, and recognized in profit or loss. Gains or losses should be determined as the difference between the fair value and the carrying amount of the asset at the date of disposal, and recognized in other comprehensive income. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss in the period of the disposal. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss when the compensation becomes receivable.
Q Bookworm Co. chose to account for its investment property at fair value. During 2017, Bookworm Co. sold one of its investment properties for €80 million. The fair value of this investment property was €72 million, while its carrying amount on the date of sale was €60 million. How do you determine and recognize the gains or losses resulted from disposals of an investment property carried at fair value? Select the best response, and then click Submit. Gains or losses should be determined as the difference between the fair value and the net disposal proceeds of the asset at the date of disposal, and recognized in profit or loss. Gains or losses should be determined as the difference between the fair value and the carrying amount of the asset at the date of disposal, and recognized in other comprehensive income. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss in the period of the disposal. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss when the compensation becomes receivable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bookworm Co. chose to account for its investment property at fair value. During 2017, Bookworm Co. sold
one of its investment properties for €80 million. The fair value of this investment property was €72 million,
while its carrying amount on the date of sale was €60 million.
How do you determine and recognize the gains or losses resulted from disposals of an investment
property carried at fair value?
Select the best response, and then click Submit.
Gains or losses should be determined as the difference between the fair value and the net disposal proceeds of
the asset at the date of disposal, and recognized in profit or loss.
Gains or losses should be determined as the difference between the fair value and the carrying amount of the
asset at the date of disposal, and recognized in other comprehensive income.
Gains or losses should be determined as the difference between the net disposal proceeds and the carrying
amount of the asset, and recognized in profit or loss in the period of the disposal.
Gains or losses should be determined as the difference between the net disposal proceeds and the carrying
amount of the asset, and recognized in profit or loss when the compensation becomes receivable.
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