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Under IAS 40 Investment Property, which of the following is correct?

• Investment property is property held for administrative purposes

• Investment property is property held for use in the supply of services

• Investment property is property held for use in the production of goods

• Investment property is not used in production or supply of goods and services, or for administration and not held for sale in the ordinary course of business

According to IAS 40 does not apply to

• Biological assets related to agricultural activity

• Mineral rights and mineral reserves such as oil, natural gas and similar non‑regenerative resources.

• Both are correct

• Both are wrong

Which of the following properties is considered Investment Property?

I. Land held for currently undetermined future use

II. Property under construction or being developed for future use as investment property.

III. Property held for future use as owner-occupied property

IV. Property that is owner-occupied

• I,II

• III, IV

• I, III

• II, IV

Distinguish between Investment property & Owner-occupied property based on which of the following factors?

• Change in use

• Useful life

• Both are correct

• Both are wrong

Real estate company A has not yet sold some land plots, so it is temporarily rented out, so these land lots are considered investment properties.

• True

• False

Lease asset is classified as an investment property, true or false?

• True

• False

An owned investment property shall be recognized as an asset when:

• It is probable that the future economic benefits that are associated with the investment property will flow to the entity

• The cost of the investment property can be measured reliably

• Both are correct

According to IAS 40,an entity does not recognize in the carrying amount of an investment property the costs of the day-to-day servicing of such a property. Rather, these costs are recognised in profit or loss as incurred

• True

• False

Initial costs, costs when the investment property is put into operation for the first time before the investment property reaches normal operating conditions as expected, unusual costs of raw materials, labor or other resources in the construction of the investment propert

• True

• False

An entity has investment property that is held to earn rental income. The entity uses fair value model for reporting the investment property. Which statement is true?

• Changes in fair value are recognized in profit or loss of the current period

• Changes in fair value are reported as an extraordinary gain in the period

• Changes in fair value are reported as component of other comprehensive income for the period

• Changes in fair value are reported as deferred revenue for the period