IAS 40 - Investment Property.

Question 1

Investment property

Answer 1

Is property held to earn rentals or capital appreciation or both

Question 2

Owner occupied property - IAS 16

Answer 2

Property used by the owner for production supply of goods and services and administration.

Question 3

Ancillary services

Answer 3

Additional services that a lesser to a lessee
Rentals = insignificant = 1AS40
Hotel = significant = IAS 16

Question 4

Exchange of now-monetary hems

Answer 4

1. FV of the given up asset
2. FV ofacquired if it is more reliable
3. Carrying amount of old it FV cannot be measured and the transaction has no commercial substance.

Question 5

Fair value model or cost model

Answer 5

Fair value model - the price that would be received to sell an asset or pard to transfer a liability in an orderly transaction between market participants at the measurement date