IA1 - Investment Property (CHAP ) Flashcards
Which statement best describes investment property?
A. Property held for sale in the ordinary course of business
B. Property held for use in the production and supply of goods or services and property held for administrative purposes
C. Property held to earn rentals or for capital appreciation
D. Property held for capital appreciation
C. Property held to earn rentals or for capital appreciation
Which of the following statements best describes owner-occupied property?
A. Property held for sale in the ordinary course of business
B. Property held for use in the production and supply of goods or service and property held for administrative purposes
C. Property held to earn rentals
D. Property held for capital appreciation
B. Property held for use in the production and supply of goods or service and property held for administrative purposes
Investment property includes all of the following, except
A. Land held for long-term capital appreciation.
B. Land held for currently undetermined use
C. Building owned by the reporting entity and leased out under an operating lease.
D. Property held for sale in the ordinary course of business.
D. Property held for sale in the ordinary course of business.
Which of the following is an investment property?
A. Property being constructed or developed on behalf of third party
B. Property that is being constructed and developed as investment property
C. Property held for future development and subsequent use as owner-occupied property
D. Owner-occupied property awaiting disposal
B. Property that is being constructed and developed as investment property
Under IFRS, assets classified as investment property are
A. Held for rental income
B. To be sold for quick profit
C. Held for rental income or to be sold for a quick income
D. Held for sale in the ordinary course of business
C. Held for rental income or to be sold for a quick income
If an entity owns and manages a hotel and services provided to guests are a significant component of the arrangement as a whole, the hotel is classified as
A. Investment property
B. Owner-occupied property
C. Partly investment property and partly owner-occupied
D. Neither investment property nor owner-occupied
B. Owner-occupied property
Which statement is true concerning property leased to an affiliate?
I. From the perspective of the individual entity that owns it, the property leased to an affiliate is considered an investment property.
II. From the perspective of the affiliates as a group and for purposes of consolidated financial statements, the property is treated as owner-occupied property.
A. Both I and II
B. Neither I nor II
C. I only
D. II only
A. Both I and II
Transfers from investment property to property, plant and equipment are appropriate.
A. When there is change of use.
B. Based on the discretion of management.
C. Only when the entity adopts the fair value model.
D. The entity can never transfer property into another classification once it is classified as investment property.
A. When there is change of use.
An investment property is derecognized when
A. It is disposed to a third party.
B. It is permanently withdrawn from use.
C. No future benefits are expected from the disposal.
D. In all of these cases
D. In all of these cases
Gain or loss from disposal of investment propety shall be determined as the difference between the
A. Net disposal proceeds and carrying amount.
B. Gross disposal proceeds and carrying amount.
C. Fair value and carrying amount of the asset.
D. Gross disposal proceeds and fair value of the asset.
A. Net disposal proceeds and carrying amount.
An investment property shall be measured initially at
A. Cost
B. Cost less impairment
C. Depreciable amount less impairment
D. Fair value less impairment
A. Cost
Subsequent to initial recognition, the investment property shall be measured using
A. Fair value model or revaluation model
B. Fair value model
C. Cost model or fair value model
D. Cost model or revaluation model
C. Cost model or fair value model
Which statement is true, if the entity uses the fair value model for investment property?
A. The entity should value the property at cost less accumulated depreciation and impairment.
B. The entity should report the increase in fair value in other comprehensive income for the period.
C. The entity depreciates the equipment using normal depreciation method.
D. The entity does not record depreciation on the investment property.
D. The entity does not record depreciation on the investment property.
Which additional disclosure must be made when an entity chooses the cost model?
A. The fair value of the property
B. The present value of the property
C. The value in use of the property
D. The net realizable value of the property
A. The fair value of the property
Which disclosure shall be made when the fair value model has been adopted?
A. Depreciation method used
B. The amount of impairment loss recognized
C. Useful life
D. Net gain or loss from fair value adjustments
D. Net gain or loss from fair value adjustments
