Investment Property

Question 1

Objective

Answer 1

To measure the fair value of investment property

Question 2

Scope/Identification

Answer 2

Applies to the accounting of property held to earn rentals or for Capital appreciation or both

Question 3

Examples of investment property

Answer 3

Land held for long-term capital appreciation
land held for currently undetermined future use
building leased out under operating lease
vacant building held to be leased under operating lease
property that is being constructed or developed for future use as investment property

Question 4

Not investment property

Answer 4

Property held for years of production or admin
property held for sale in the ordinary course of business
property being constructed on behalf of third parties
owner-occupied property
property leased to another entity

Question 5

Ancillary Services

Answer 5

Additional services that a lessor may provide to at lessee

Question 6

Recognition criteria

Answer 6

When it is probable that the future economic benefits that are associated with the property will flow to The Entity and the cost of the Investment property is reliably measurable

Question 7

Initial measurement

Answer 7

Cost plus transaction costs

Question 8

Costs not included

Answer 8

Startup costs
abnormal waste
initial operating losses
unproductive labor costs

Question 9

Measurement models

Answer 9

Fair value model
cost model

Question 10

Fair value model

Answer 10

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between Market participants at the measurement date

Question 11

De-recognition of investment property

Answer 11

On disposal
on entering into finance lease
when the properties permanently withdrawn from use