Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use.
1. Which of the following would not be reported as investment property?
a. Property owned by the entity and leased out under one or more operating leases.
b. Property held by the entity to be leased out under one or more operating leases
c. Real estate held for an undetermined future use.
d. Property owned by the entity and leased out to another entity under a finance lease.
2. All of the following do not qualify as investment property, except
a. Machineries that are held for lease
b. Hotels or motels
c. Agricultural land purchased for appreciation purposes
d. Equipment purchased for an indeterminate purpose
3. A property is classified as investment property if
a. it is leased out under a finance lease.
b. the owner-occupied portion of the property is significant.
c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property.
d. it is rented between a parent entity and a subsidiary and consolidated financial statements are prepared for the group.
4. How does the fair value model differ from the revaluation model?
a. Increases in carrying amount above a cost-based measure are recognized in equity
b. Changes in fair value are recognized in profit or loss
c. a and b
d. neither a nor b
5. Which of the following generally provides the best evidence of fair value of an investment property?
a. Discounted cash flow projections based on reliable estimates of future
b. Recent prices on less active markets with adjustments to reflect changes in economic conditions.
c. Current prices for properties of a different nature or subject to different conditions.
d. Current prices on an active market for similar property in the same location and condition.
6. Select the correct statement.
a. A leasing company should treat all its assets used in providing lease services as investment property.
b. Investment properties that are to be disposed of without further development are treated as investment property until they are derecognized.
c. All investment properties held for capital appreciation will be classified as held for sale in the long run.
d. Investment properties being re-developed as investment properties on behalf of third parties are investment properties.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
