Q The Eastern Investment Company buys a building that meets the definition of an investment property. Three months later, Eastern incurs expenditure relating to the renovation of the building. The renovation costs were taken into account on initial measurement of the building. How should this expense be treated? Select the best response, and then click Submit. The expenditure should be added to the carrying amount of the building if it meets the recognition criteria. The expenditure should be added to the carrying amount of the building as it is a directly attributable expenditure. The expenditure should be taken directly to profit or loss as it is not part of the purchase price. The expenditure should be taken directly to profit or loss as it was incurred after more than 3 months.

The Eastern Investment Company buys a building that meets the definition of an investment property. Three months later, Eastern incurs expenditure relating to the renovation of the building. The renovation costs were taken into account on initial measurement of the bulling. How should this expense be treated? Select the best response, and then click submit. The expenditure should be added to the carrying amount of the building if it meets the recognition criteria. The expenditure should be added to the carrying amount of the building as it is a directly attributable expenditure. The expenditure should be taken directly to profit or loss as it is not part of the purchase price. The expenditure should be taken directly to profit or loss as it was incurred after more than 3 months