Robin owns several properties and has a year end of 31 December. Wherever possible, Robin carries investment properties under the fair value model.

Property 1 was acquired on 1 January 2011. It had a cost of Rs1 million, comprising Rs500,000 for land and Rs500,000 for buildings. The buildings have a useful life of 40 years. Robin uses this property as its head office.

Property 2 was acquired many years ago for Rs1.5 million for its investment potential. On 31 December Year 2017 it had a fair value of Rs2.3 million. By 31 December Year 2018 its fair value had risen to Rs2.7 million. This property has a useful life of 40 years.

Property 3 was acquired on 30 June Year 2012 for Rs2 million for its investment potential. Robin believe that the fair value of this property was Rs3 million on 31 December Year 2017 and Rs3.5 million on 31 December Year 2018. However, due to the specialized nature of this property, these figures cannot be corroborated. This property has a useful life of 50 years.

Required: (a) For each of the above properties, briefly state, using relevant Accounting Standards, how it would be treated in the financial statements of Robin for the year ended 31 December Year 2018, identifying any impact on profit or loss. (10 marks)

(b) Prepare an analysis of property, plant and equipment for Robin for the year ended 31 December Year 2018, showing each of the above properties separately. (12 marks) (c) With regard to IAS 40: Investment Property, advise Robin on the disclosures required for the fair value model and cost model. (8 marks)