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WorksheetsKTQTNC
Total questions: 15
Worksheet time: 8mins
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
When should an entity stop measuring investment property at fair value under IAS 40?
When the property is no longer being held for its investment potential
When the property is sold
When the property is no longer being leased out
ABC owned a building that it held to be leased out under an operating lease property. In 20X0, its carrying value was $48 million and its remaining useful life was 20 years. The company does not use the land for any purpose and use cost model for Investment property. In 20X5, they sell the building for $55 million. How much is the gain from disposal of the building?
$7 million
$9,4 million
$19 million
$12 million
How are gains or losses arising from the disposal of investment property determined?
Revenue from disposal - Disposal cost
Revenue from disposal - Carrying amount of asset
Net disposal proceeds - Residual value of asset
Net disposal proceeds - Carrying value of asset
According to IAS 40, when presenting in financial statements, enterprises must disclose information about which of the following models:
Fair Value Model
Cost Model
Both are correct
Depending on the model that the enterprise chooses to apply
If the fair value of an item of investment property cannot be measured reliably, additional disclosures are required, including:
A description of the investment property
Explain why investment property cannot be reliably valued
If possible, the range of estimates within which fair value is highly likely to lie
All are correct
