Question 1

When an entity accounts for investment property using the cost model, when is the value of the property revalued?

Accepted Answer

A)  At the end of the reporting period. 
B)  Whenever the value of the property changes materially. 
C)  When the sum of the next 10 year's expected cash flows from the property is less than its carrying value. 
D)  Never. 
A)  At the end of the reporting period. 
B)  Whenever the value of the property changes materially. 
C)  When the sum of the next 10 year's expected cash flows from the property is less than its carrying value. 
D)  Never.

Question 2

A distinguishing feature of investment property is that it generates cash flows independently of other assets held by the entity.

Accepted Answer

A) True 
 B)False

Question 3

If an entity chooses the cost model to measure the investment property after initial recognition, why must fair value information also be disclosed?

Accepted Answer

The answer of If an entity chooses the cost model...

Question 4

An investment property is measured initially at cost at the time the cost is incurred, which is equivalent to fair value, assuming that

Accepted Answer

A)  management's intent when purchasing the property is clearly known. 
B)  the acquisition was the result of an arm's-length exchange transaction. 
C)  the investment property does not require additional expenditures before it can be used. 
D)  The cost of the property and its fair value are the same. 
A)  management's intent when purchasing the property is clearly known. 
B)  the acquisition was the result of an arm's-length exchange transaction. 
C)  the investment property does not require additional expenditures before it can be used. 
D)  The cost of the property and its fair value are the same.

Question 5

A distinguishing feature of investment property is that it

Accepted Answer

A)  appreciates faster than other property. 
B)  generates cash flows independently of other assets held by the entity. 
C)  is easily sold on independent markets. 
D)  is accounted for at the lower of cost or net realizable value. 
A)  appreciates faster than other property. 
B)  generates cash flows independently of other assets held by the entity. 
C)  is easily sold on independent markets. 
D)  is accounted for at the lower of cost or net realizable value.

Question 6

How does accounting for different portions of the property as investment property and property, plant and equipment adhere to the qualitative characteristics of the Conceptual Framework?

Accepted Answer

The answer of How does accounting for different portions of...

Exam 17: Investment Property

When an entity accounts for investment property using the cost model, when is the value of the property revalued?

A distinguishing feature of investment property is that it generates cash flows independently of other assets held by the entity.

If an entity chooses the cost model to measure the investment property after initial recognition, why must fair value information also be disclosed?

An investment property is measured initially at cost at the time the cost is incurred, which is equivalent to fair value, assuming that

A distinguishing feature of investment property is that it

How does accounting for different portions of the property as investment property and property, plant and equipment adhere to the qualitative characteristics of the Conceptual Framework?

Introduction to International Financial Reporting Standards Ifrs

Conceptual Framework for Financial Reporting

Fair Value Measurement

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies, Estimates, and Errors

Events After the Reporting Period

Related Party Disclosures

Earnings Per Share

Operating Segments

Inventories

Financial Instrumentsrecognition and Measurement

Financial Instrumentspresentation

Financial Instrumentsdisclosures

Property, Plant, and Equipment

Intangible Assets

Impairment of Assets

Leases

Revenue From Contracts With Customers

Income Taxes

Employee Benefits

Share-Based Payments

Provisions, Contingent Liabilities, and Contingent Assets

The Effects of Changes in Foreign Exchange Rates

Hyperinflation

Business Combinations

Consolidated Financial Statements

Investments in Associates and Joint Ventures

Joint Arrangements

Disclosure of Interests in Other Entities

Separate Financial Statements

Interim Financial Reporting

Non-Current Assets Held for Sale and Discontinued Operations

Regulatory Deferral Accounts

Borrowing Costs

Accounting and Reporting by Retirement Benefit Plans

Accounting for Government Grants and Disclosure of Government Assistance

Insurance Contracts

Exploration for and Evaluation of Mineral Resources

Agriculture

First-Time Adoption of International Financial Reporting Standard

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