urage Hodey Inc. owns the following properties as at 31 December 2019: Property: Fair value (GH¢million) 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.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Courage Hodey Inc. owns the following properties as at 31 December 2019:
Property: Fair value (GH¢million)
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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