Investment Property (Finals) Flashcards
How can you recognized investment property as an asset
it is probable that will have a future economic benefits flow to the entity and cost can be measured reliably
How investment property shall be measured initially at cost
its purchase price and any directly attributable expenditures, such as legal fees or professional fees
If it directly attributable to the item of investment property, then these can be included
Start-up expenses
These are losses incurred before the planned occupancy level is achieved
Operating losses
These include material, labor, or other resources incurred at construction
Abnormal wastes
When payment for investment property is deffered, what of the property you will be set by discounting it to its present value
Cash price equivalent
An entity shall choose as its accounting policy either the fair value model or the cost model. T or F, why?
It shall apply that policy to all of its investment properties
It is fund set aside for the liquidition of long-term debt, this type of fund is classified as a non current asset but if it set aside becomes due within 12 months after the end of the reporting period, it reclassified as current asset
Sinking fund or redemption fund
It is a fund set aside by the company to ensure the eventual redemption of the preference share
Preference share redemption fund
It is a fund set aside in anticipation of future acquisition of additional property because of expanded or increased volume of operations
Plant expansion fund
It is a fund set aside to meet obligations that may arise from contingencies like pending lawsuits or taxes dispute
Contingency fund
It is a fund set aside to meet obligations that may arise from certain risk not insured, such as fire, typhoon, explosion, and other similar casualties
Insurance fund
In presentation of financial statements, investment property shall be separately shown as?
a separate line item
