Wingtip, a building company, owns a property which is currently occupied by its subsidiary. How should this property be accounted for in the CONSOLIDATED financial statements? Select one: a. As Investment Property under IAS 40 - Investment Property b. As Inventory under IAS 2 -Inventories c. As a lease under IFRS 16 Leases d. As Property under IAS 16, Property, Plant and Equipment An investment property under IAS 40 can be held for which of the following purposes? Select one: a. For use in the supply of services b. For use as retail premises c. For capital appreciation d. For use as an office If the fair value of an investment property cannot be reliably measured, how should it be recognised? Select one: a. At an estimated amount under IAS 40 b. At value in use c. At cost less depreciation under IAS 16 d. At estimated replacement cost

Wingtip, a building company, owns a property which is currently occupied by its subsidiary. How should this property be accounted for in the CONSOLIDATED financial statements? Select one: a. As Investment Property under IAS 40 - Investment Property b. As Inventory under IAS 2 -Inventories c. As a lease under IFRS 16 Leases d. As Property under IAS 16, Property, Plant and Equipment An investment property under IAS 40 can be held for which of the following purposes? Select one: a. For use in the supply of services b. For use as retail premises c. For capital appreciation d. For use as an office If the fair value of an investment property cannot be reliably measured, how should it be recognised? Select one: a. At an estimated amount under IAS 40 b. At value in use c. At cost less depreciation under IAS 16 d. At estimated replacement cost

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 12MCQ

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Which one of the following would be recognised as an investment property under IAS 40 in the consolidated financial statements of ABC ltd? A A property intended for sale in the ordinary course of business B A property being constructed for a customer C A property held by BC ltd under a finance lease and leased out under an operating lease D A property owned by BC ltd and leased out to a subsidiary
1. Which of the following would not be reported as investment property? a. Property owned by the entity and leased out under one or more operating leases. b. Property held by the entity to be leased out under one or more operating leases c. Real estate held for an undetermined future use. d. Property owned by the entity and leased out to another entity under a finance lease. 2. All of the following do not qualify as investment property, except a. Machineries that are held for lease b. Hotels or motels c. Agricultural land purchased for appreciation purposes d. Equipment purchased for an indeterminate purpose 3. A property is classified as investment property if a. it is leased out under a finance lease. b. the owner-occupied portion of the property is significant. c. the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d. it is rented between a parent entity and a subsidiary and…
which of the following are fixed assets? Financial assets at fair value through profit or loss Interests in and advances to joint ventures, co-venturers and associates Property, plant and equipment Right-of-use assets Investment properties Trademarks, goodwill and other intangible assets Operating lease receivables Finance lease receivables
A subsidiary leases its office unit from its parent company. The parent company appropriately classifies this office unit as investment property in its statement of financial position. In the consolidated financial statements, how should this office unit be classified?a. Inventoriesb. Investment Propertyc. Property, Plant and Equipment d. Not presented
A property is classified as investment property if Question options: a it is leased out under a finance lease b the owner-occupied portion of the property is significant. c the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d it is rented between a parent entity and a subsidiary and consolidated financial statements are prepared for the group
If an entity as lessee presents as investment property a property interest held under an operating lease then the entity 1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.
The consolidated balance of fixed assets will be affected by working paper entriesinvolving all of the following,except: a.Excess of fixed asset FV over BV of the parent at the date of acquisitionb.Amortization of the excess of fixed asset FV over BV of the subsidiary at the date ofacquisitionc.Unrealized gain or loss on intercompany sale of fixed assetd.Realized gain or loss on intercompany sale of fixed asset
The consolidated balance of fixed assets will be affected by working paper entries involving all of the following, except: A. Excess of fixed asset FV over BV of the parent at the date of acquisition B. Amortization of the excess of fixed asset FV over BV of the subsidiary at the date of acquisition C. Realized gain or loss on intercompany sale of fixed asset D. Unrealized gain or loss on intercompany sale of fixed asset
The consolidated balance of fixed assets will be affected by working paper entriesinvolving all of the following,except: A.Excess of fixed asset FV over BV of the parent at the date of acquisitionB.Unrealized gain or loss on intercompany sale of fixed assetC.Realized gain or loss on intercompany sale of fixed assetD.Amortization of the excess of fixed asset FV over BV of the subsidiary at the date ofacquisition
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