INVESTMENT PROPERTY
Let’s Check
1. _____________ The account used for the difference between the carrying amount
and fair value if owner-occupied property is to be transferred as investment property
under fair value model. Revaluation
2. ___________ Examples of these are commencement of owner occupation,
Commencement of development with a view to sale, end of owner-occupation,
commencement of an operating lease from owner-occupied property to investment
property. Change of use
3. ____________ When the fair value of the investment property increased compared
to its carrying amount at the start of the year, what is the treatment of the amount of
difference? Gain from change in fair value
4. ____________ from disposal of investment property is the excess of the net disposal
proceeds after deducting the carrying amount of the investment property. Gain
5. ____________ When an investment property is carried at fair value, any changes in
the fair value is reported in _____________ statement. Income Statement
6. ____________When cost model is used by an entity, transfers between investment
property, owner-occupied property and inventory shall be made at this amount.
Carrying Amount
7. ____________ Under this model, transfers from investment property shall be made
at fair value. Fair Value Model
8. ____________This subsequent measurement of investment property carries the
investment at cost less accumulated depreciation and accumulated impairment losses
with Fair value disclosure. Cost Model
9. ___________ It refers to land or buildings held primarily to earn rentals or for capital
appreciation. Investment Property
10. ____________ from disposal of investment property is the excess of the net
disposal proceeds after deducting the carrying amount of the investment property.
Gain
True or False: Write true if the statement is correct and false if the statement is
wrong.
11. Property that is leased to another entity under a finance lease is an example of
investment property. False
12. Property held for future us as owner occupied property is an example of
investment property. False
13. An investment property held by a lessee as a right of use asset shall be recognized
in accordance with IFRS 16. True
14. The cost of an investment property is not increased by startup costs (unless they
are necessary to bring the property to the condition necessary for it to be capable of
operating in the manner intended by management. True
15. The cost of an investment property does include operating losses incurred before
the investment property achieves the planned level of occupancy. False
16. The cost of an investment property held by a lessee as a right-of-use asset is
measured initially at cost in accordance with IAS 40. False