MFRS 140 INVESTMENT PROPERTY

Definition of investment property (MFRS140)

• Land or building held to gain rental income

• Land or building held for trading purposes

• Land or building held as company's inventories

• Land or building held for long term capital appreciation

Which of the following is categorize as investment property (MFRS 140)?

• Property which is planned to be leased out under finance lease

• Property which is owner occupied

• Property which is rented out to third parties

• Property which is constructed for third party

• Property which is lease out under operating lease

What is the subsequent measurement available under MFRS140 Investment Property?

• Revaluation model

• Cost model

• Fair value model

• Straight line method model

What does it mean by dominant usage?

• Minority usage will dominate the final conclusion of usage

• Majority usage will lead to the final conclusion of usage

Company XYZ acquired a 10-storey building on 1 January 2019. The company used 4 levels for XYZ headquarters and the remaining floors the company rented it to ABC company. In situation where the building cannot be sold separately, what is the conclusion of the property usage?

• The whole 10 storey building conclude as MFRS140 Investment property.

• The whole 10 storey building conclude as property under MFRS116 Property, plant and equipment

• 4 levels investment property (MFRS140), 6 levels property (MFRS116)

• 6 levels investment property (MFRS140), 4 levels property (MFRS116)

10 levels of building owned by X, 2 levels used for X headquaters, 2 levels Affin Bank, 2 level for Z hotel, 4 level rent out to subsidiary. Group reporting, cannot be sold separately.

• 6 levels MFRS116, 4 levels MFRS140

• 10 levels MFRS140

• 6 levels MFRS140, 4 levels MFRS116

• 10 levels MFRS116

Cannot be sold separately?

• Individual usage

• Dominant usage

Can be sold separately?

• Individual usage

• Dominant usage

Hotel owned by owner

• MFRS140

• MFRS116

Parent rent unit to subsidiary....

• Group reporting --> PPE

• Group reporting --> IP

• Individual reporting --> PPE

• Individual reporting --> IP