Ias 40 Revision

IAS 12:51C can be rebutted for land?

• True

• False

A newly acquired building correctly classified as IP under the fair value model, has multiple lifts and each room has an aircon. What is included in the fairvalue of the IP?

• Only the building

• The building and the lifts

• The building and the aircons

• The building, lifts and aircons.

Investment property held on the fair value model differs from the cost model in what way?

• Fair value model has no depreciation

• IAS 36 applies to both models

• The Fair value model has no depreciation and IAS 36 is N/A

• The fair value model has no depreciation, but IAS 36 applies

It is likely for a company to change their accounting policy in respect of investment property from?

• Cost model to Fair value model

• Cost model to Revaluation model

• Revaluation model to cost model

• Fair value model to cost model

The fair value of IP should always disclosed the financial statements

• True

• False

where Investment property on the fair value model is held as a right of use asset, the fair value of the invetment property is based on?

• The fair value of the right of use asset

• The carry amount of the lease liability

• The Fair value of the Investment property

• The Fair value of the lease liability

Investment property leased out under an operating lease, gives rise to an lease accrual. Should the lease accrual be included in the fair value of the IP, since it represents a future cashflow expected to be recovered?

• False

• True

What is not invetment property?

• Land held for short term capital appreciation

• Building leased out under an operating lease

• land held for an undetermined use

• A building held for future use as a storage facility

The NWU, rents out a guest house to guest lecturers who travels from a far, included is a cleaning service, a buffet breakfast and dinner, laundry facilities, and security services. Does the guest house classify as investment property or PPE ?

• Investment property

• PPE (owner occupied)

Inventory that is transferred to investment property under the fair value model is transferred at?

• Carry amount of the invetment property

• Carry amount of the inventory

• Fair value of the investment property

• Fair valie of the inventory