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ACYFAR 3 > INVESTMENT PROPERTY > Flashcards

INVESTMENT PROPERTY Flashcards

Master IP

1
Q

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

A

IP

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2
Q

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

A

No

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3
Q

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

A

PPE to IP

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4
Q

Where is the gain on transfer recorded?

A

Profit or Loss

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5
Q

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

Land held for capital appreciation

A

IP

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6
Q

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

Land held for undetermined future use?

A

IP

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7
Q

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

Building leased out under operating lease

A

IP

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8
Q

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

Vacant Building leased out under operating lease

A

IP

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9
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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10
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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11
Q

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

OOP awaiting disposal

A

PPE (OOP)

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12
Q

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

Properties leased out under finance lease.

A

Lease Receivable

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13
Q

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

Properties held under finance lease.

A

Lease Liability and ROUA

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14
Q

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

Building leased out that provides ancillary services (silent).

A

IP

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15
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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16
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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17
Q

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

A

OOP (PPE)

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18
Q

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

A

IP

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19
Q

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

A

< 20%

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20
Q

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

A

20-50%

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21
Q

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

A

> 50%

22
Q

What is the initial measurement of IP?

A

Cost

23
Q

What is the subsequent measurement of IP under cost model?

A

Cost - AD - IL = Carrying Amount

24
Q

What is the subsequent measurement of IP under FV model?

A

FV
(No depreciation nor impairment losses are recognized)

25
Q

What is the initial measurement of IP if installment basis?

A

Cash Price Equivalent

26
Q

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

A

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

27
Q

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

A

CV of given up + cash paid - cash received

28
Q

What is the initial measurement of self-constructed IP?

A

Materials + Labor + OH

29
Q

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

Consolidated:
Building leased out under finance lease.

A

Lease Receivable

30
Q

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

Individual:
Building leased out under finance lease.

A

Lease Receivable

31
Q

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

Consolidated:
Property leased out to subsidiary under a finance lease.

A

PPE

32
Q

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.

A

Lease Receivable

33
Q

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

Consolidated:
Property leased out to subsidiary under a finance lease.

A

PPE

34
Q

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

Individual:
Property held for sale under ordinary course of business

A

Inventory

35
Q

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

Consolidated:
Property held for sale under ordinary course of business

A

Inventory

36
Q

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

Individual (Parent):
Property held by subsidiary leased out under operating lease

A

Ignore

37
Q

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

Individual (Parent):
Property held under finance lease, leased out under operating lease

A

IP

38
Q

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

Consolidated:
Property held by subsidiary under finance lease, leased out under operating lease

A

IP

39
Q

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

Individual (Parent):
Property held under finance lease and leased out to subsidiary under operating lease.

A

IP

40
Q

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

Consolidated:
Property held under finance lease and leased out to subsidiary.

A

PPE

41
Q

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

Consolidated:
Property held from subsidiary under finance lease.

A

PPE

42
Q

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

Individual:
Property held from subsidiary under finance lease.

A

Lease liability, ROUA

43
Q

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

Individual:
Machinery leased out under operating lease?

A

PPE

44
Q

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

Individual:
Machinery leased out under finance lease?

A

Lease receivable

45
Q

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

A

IP

46
Q

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

Consolidated:
Building held under finance lease from subs and leased out op lease

A

IP

47
Q

What are the two characteristics of an operating lease?

A
  1. Short Term Lease
  2. Low Value Lease

Low value lease is a matter of professional judgment

48
Q

What are the four indicators of a finance lease?

A

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

49
Q

What are the directly attributable costs for IP?

A
  1. professional fees for legal services
  2. property transfer taxes
  3. other transaction costs
50
Q
A

ACYFAR 3 (9 decks)

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