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Rooibos pic purchased a five-story building two years ago for 750.000. The top floor is used as the entity's head office and the other 4
Rooibos pic purchased a five-story building two years ago for 750.000. The top floor is used as the entity's head office and the other 4 floors are rented out to tenants. All of the floors could be sold separately. The property has been recognised as 'property, plant and equipment in the financial statements of Rooibos plc since acquisition. During the current year the accountant re-classified the property as investment property. The re-classification should be treated as: Select one: a. A change in accounting policy O b. A re-classification of a financial statement item OO c. A change in estimate d. A correction of a fundamental error e. A correction due to misinterpretation of accounting standards
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