Romel (Pty) Ltd is a company that started operating on 1* January 2019 and has its year end on 31 December each year. The company's head office is in Pretoria. It also owns land and buildings in North West Province which was purchased for R 300 000. The land and buildings are leased to tenants under an operating lease for R 50 000 per annum. Required: 1.1 Identify whether leased land and building can be recognized as an investment property under IAS 40. HINT: Start by identifying whether it can be recognized as an asset or not. RECOMMENDED FORMAT DEFINITION APPLICATION 1.2. Journalize the purchase of Land and Buildings on 31* December 2019 and the rental received in the same year.

Romel (Pty) Ltd is a company that started operating on 1* January 2019 and has its year end on 31 December each year. The company's head office is in Pretoria. It also owns land and buildings in North West Province which was purchased for R 300 000. The land and buildings are leased to tenants under an operating lease for R 50 000 per annum. Required: 1.1 Identify whether leased land and building can be recognized as an investment property under IAS 40. HINT: Start by identifying whether it can be recognized as an asset or not. RECOMMENDED FORMAT DEFINITION APPLICATION 1.2. Journalize the purchase of Land and Buildings on 31* December 2019 and the rental received in the same year.

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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