Final assessment Q Select the best response, and then click Submit. Glossary Resources Kitsch Property (Kitsch) owns a 12-story building, Penthouse Suite. Kitsch decides to rent out the building under operating leases, in accordance with IFRS 16, other than one unit on the ground floor that is occupied by Kitsch as its building management office. Kitsch provides ancillary security and maintenance services to its tenants. Each story of the building is separately identifiable. Which of the following statements is correct? | Question 1 As each story of Penthouse Suites is separately identifiable, it should account for the ground floor that is owner- occupied under IAS 16, and the other stories ander IAS 40. As long as the units of Penthouse Suites are separately identifiable and Kitsch has the intention to rent out the building under operating leases, it should account for the entire property as an investment property under IAS 40. Since the portion occupied by Kitsch together with the ancillary services provided to the tenants is a relatively insignificant component of the company, Kitsch should account for the entire property as an investment property under IAS 40. Submit Since a majority of Penthouse Suites is rented out under operating leases, Kitsch should account for the entire property as an investment property under IAS 40.

Select the best response, and then click Submit. As each story of Penthouse Suites is separately identifiable, it should account for the ground floor that is owneroccupied under IAS 16, and the other stories inder IAS 40. As long as the units of Penthouse Suites are separately identifiable and Kitsch has the intention to rent out the building under operating leases, it should account for the entire property as an investment property under IAS 40. Since the portion occupied by Kitsch together with the ancillary services provided to the tenants is a relatively insignificant component of the company, Kitsch should account for the entire property as an investment property under IAS 40 . Since a majority of Penthouse Suites is rented out under operating leases, Kitsch should account for the entire property as an investment property under IAS 40