Question
A. Jennings Inc. and its subsidiaries have provided you, their International Financial Reporting Standards (IFRS) specialist, with a list of the properties they own: 1.
A. Jennings Inc. and its subsidiaries have provided you, their International Financial Reporting Standards (IFRS) specialist, with a list of the properties they own: 1. Land held by Jennings Inc. for undetermined future use 2. A vacant building owned by Jennings Inc. and to be leased out under an operating lease 3. Property held by a subsidiary of Jennings Inc., a real estate firm, in the ordinary course of its business 4. Property held by Jennings Inc. for the use in production 5. A hotel owned by Reid Inc., a subsidiary of Jennings Inc., and for which Reid Inc. provides security services for its guests belongings
Required i. Advise JENNINGS Inc. and its subsidiar should they be treated under IFRS/IAS? ii. Identify and explain when investment property is recognized.
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