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vead-office buiding on 1 July 2022 for N$600,000. Marvin uses 3 of 24 property. plant and equipment and the total useful life of the alue:
vead-office buiding on 1 July 2022 for N\$600,000. Marvin uses 3 of 24 property. plant and equipment and the total useful life of the alue: nili). 1 leased out 60% of its head-office building under an operating A or lease out (finance lease) this 60% portion of the building separately from the rest of the bulding. The fair value of the building was N\$800,000 on 1 January 2023 and N\$820,000 on 30 June 2023. Marvin Limited uses the fair value model to measure ts investment propertes. REQUIRED: a) Write an emall to the financial director of Marvin Limited explaining how the building should be recognised in the frnancial statements for the year ended 30 June 2023. (8) vead-office buiding on 1 July 2022 for N\$600,000. Marvin uses 3 of 24 property. plant and equipment and the total useful life of the alue: nili). 1 leased out 60% of its head-office building under an operating A or lease out (finance lease) this 60% portion of the building separately from the rest of the bulding. The fair value of the building was N\$800,000 on 1 January 2023 and N\$820,000 on 30 June 2023. Marvin Limited uses the fair value model to measure ts investment propertes. REQUIRED: a) Write an emall to the financial director of Marvin Limited explaining how the building should be recognised in the frnancial statements for the year ended 30 June 2023. (8)
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