Under IAS40 - Investment property, where should a gain or loss on disposal be recognised. A. Profit or loss B. Other comprehensive income C. Equity D. None of these Which of the following disclosures are not required in terms of IAS40.74 to IAS40.79? A. The criteria that was developed to distinguish investment property from other asset-classes when classification is difficult. B. Whether the entity applies the fair value or the cost model. C. The carrying amount of investment properties pledged as security for liabilities. D. None of these An entity has a factory which, due to a decline in activvity is not longer required and is now being held for sale. It is appropriate for the entity to account for this property as investment property. True False Investment property may be measured in terms of either the cost model or the revaluation model. True False Which of the following properties are excluded from the scope of IAS 40 - Investment property? A. Investment properties held under a finance lease in the financial statements of the lessee B. Forests and similar regenerative natural resources (biological assets) C. Land held for a currently undetermined future use. D. Property that is being constructed or developed for future use as investment property. Which two of the following properties fall under the definition of investment property and therefore within the scope of IAS40? 1. Property occupied by an employee paying market rent. 2. A building owned by an entity and leased out under an operating lease. 3. Property being constructed on behalf of 3 rd parties. 4. Land held for long term appreciation. A. Option 1 and 2 B. Option 2 and 4 C. Option 1 and 3 D. Option 2 and 3 Transfers into and out of investment property may only occur when management intentions have changed regarding the intended use of the property, such that the definition of investment property will no longer be met, or the definition will be met when it previously had not been met. True False Investment property includes plant and machinery from which rental income is earned or which is held for capital appreciation. True False Farming land is purchased for its investment potential. The entity has not decided to build any constructions of any kind on this property. It is appropriate for the entity to classify this land as investment property. True False If an entity uses an insignificant part of a building for their own use, and rents the remainder. How should this be treated? A. All as investment property under IAS40 - Investment property B. Account for separately under IAS 16 Property, plant and equipmet and IAS 40 - Investment property C. All under IAS 16 - Property, plant and equipment D. None of these
