INVESTMENT PROPERTY Flashcards by Anthea Gabrielle Buenavista

Q

What is the classification for vacant building to be leased out?

A

IP

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Q

Are start-up costs included in the measurement of IP?

A

No

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Q

When is the revaluation surplus recorded in reclassification of investment property?

A

PPE to IP

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Q

Where is the gain on transfer recorded?

A

Profit or Loss

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Land held for capital appreciation

A

IP

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Land held for undetermined future use?

A

IP

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Building leased out under operating lease

A

IP

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Vacant Building leased out under operating lease

A

IP

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Properties being constructed/developed for future use as IP.

A

IP

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Properties held for sale in ordinary course of business.

A

Inventory

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

OOP awaiting disposal

A

PPE (OOP)

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Properties leased out under finance lease.

A

Lease Receivable

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Properties held under finance lease.

A

Lease Liability and ROUA

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Q

IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA?

Building leased out that provides ancillary services (silent).

A

IP

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Q

If property or IP is separable, what is the treatment?

A

Account for separably
(ex: account the allocated amount for property and account the allocated amount for IP)

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Q

If property or IP is inseparable, what is the treatment?

A

The one with most significant amount will get the classification.

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Q

When there are ancillary services are significant, what is the treatment?

A

OOP (PPE)

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Q

When there are ancillary services are insignificant, what is the treatment?

A

IP

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Q

What percentage of ownership must you have in order to be a regular investor?

A

< 20%

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Q

What percentage of ownership must you have in order to be an investment in associate?

A

20-50%

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Q

What percentage of ownership must you have in order to have a subsidiary?

A

> 50%

Q

What is the initial measurement of IP?

A

Cost

Q

What is the subsequent measurement of IP under cost model?

A

Cost - AD - IL = Carrying Amount

Q

What is the subsequent measurement of IP under FV model?

A

FV
(No depreciation nor impairment losses are recognized)

What is the initial measurement of IP if installment basis?

Cash Price Equivalent

What is the initial measurement of IP if it is acquired through an exchange with commercial substance?

Hierarchy: 1. FV of given up + cash paid - cash received 2. FV of received 3. CV of given up + cash paid - cash received

What is the initial measurement of IP if it is acquired through an exchange without commercial substance?

CV of given up + cash paid - cash received

What is the initial measurement of self-constructed IP?

Materials + Labor + OH

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Building leased out under finance lease.

Lease Receivable

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Building leased out under finance lease.

Lease Receivable

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property leased out to subsidiary under a finance lease.

PPE

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Property leased out to subsidiary under a finance lease. Subsidiary is leasing it out under an operating lease.

Lease Receivable

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property leased out to subsidiary under a finance lease.

PPE

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Property held for sale under ordinary course of business

Inventory

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property held for sale under ordinary course of business

Inventory

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual (Parent): Property held by subsidiary leased out under operating lease

Ignore

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual (Parent): Property held under finance lease, leased out under operating lease

IP

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property held by subsidiary under finance lease, leased out under operating lease

IP

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual (Parent): Property held under finance lease and leased out to subsidiary under operating lease.

IP

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property held under finance lease and leased out to subsidiary.

PPE

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Property held from subsidiary under finance lease.

PPE

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Property held from subsidiary under finance lease.

Lease liability, ROUA

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Machinery leased out under operating lease?

PPE

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Machinery leased out under finance lease?

Lease receivable

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Individual: Building held under finance lease from subs and leased out to third party op lease

IP

# IP, PPE, Inventory, Lease Liab, Lease Rec, or ROUA? Consolidated: Building held under finance lease from subs and leased out op lease

IP

What are the two characteristics of an operating lease?

1. Short Term Lease 2. Low Value Lease | Low value lease is a matter of professional judgment

What are the four indicators of a finance lease?

T - Transfer of ownership O - Option to purchase M - Material lease term (75%) S - Substantial Present Value in relation to Fair Value (90%)

What are the directly attributable costs for IP?

1. professional fees for legal services 2. property transfer taxes 3. other transaction costs