If a company uses the fair value model to value investment property, changes in the fairvalue of the asset are least likely to aff ect:A. net income.B. net operating income.C. other comprehensive income.

Q: The measurement of revaluation model is at: Fair value at the date of acquisition less any…

A: As per the INTERNATIONAL ACCOUNTING STANDARD Revaluation concept the measurement of Revaluation…

Q: The amount of gain (loss) on sale and leaseback transaction is: Group of answer choices The…

A: Sales and lease back transaction refers to the transaction where an asset is sold by the seller to a…

Q: 1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c)…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Under IFRS, which of the following statements describes the fair value model for accounting for…

A: Investment Property: Investment properties are those  which generate income  in the form dividends,…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: An investment property should be measured initially at O A. Cost. B. Cost less accumulated…

A: Investment property is a kind of asset that is part of the balance sheet of the company. It means…

Q: key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount…

A: As per IFRS 5 a non-current asset or disposal group is classified as held for sale if its carrying…

Q: Choose the correct. What is the appropriate accounting treatment for the value assigned to…

A: Business combination refers to combining the businesses of more than one company in a single entity…

Q: If an entity was not able to determine the fair value of both the asset received and the asset given…

A: Where the exchange of Assets have a commercial substance (sufficient cash flow can be generated in…

Q: "Depreciation is a valuation process that results in the reporting of the fair value of the asset.”…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: Reporting an investment at its fair value means adjusting its carrying amount for changes in fair…

A: Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and…

Q: When does the cost of land affect an entity's profit or loss? * O When the related revaluation is…

A: The Fixed assets and Investments that are long term in nature i.e. full value of the asset cannot be…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Option b is the correct answer because the other three options are the conditions that should be…

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…

A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…

Q: If the asset or disposal group is acquired as part of a business combination, it shall be measured…

A: Business combination is the agreement or combination between two or more than two companies in which…

Q: Under IFRS, the recoverable amount of an asset is     The higher of an asset’s value in use or its…

A: Impairment of an asset: Impairment is the loss that occurs due to, unexpected decrease in the market…

Q: nder IFRS, disclosure for an investment property must include which of the following

A: The investment property is the property that is held with an intention to earn rental income. It…

Q: Depreciation is a valuation process that results in the report-ing of the fair value of the asset.”…

A: Depreciation is a form of non-cash expenditure which represents the normal wear & tear and…

Q: The standard setters identify three approaches to accounting for the impairment of financial asset…

A: a) ASPE - Incurred loss model and fair value model

Q: The best evidence of fair value for an investment property is price in a binding sale agreement…

A: Fair value is the value of investment measured at market prices for assets and liabilities.

Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…

A: GIVEN     Depreciation is based on the fair value of assets. An impairment loss occurs if…

Q: Which one of the following is not true concerning the treatment of investment properties under IAS…

A: If an investment property is held at fair value, this would not apply to all of the entity's…

Q: Under IFRS, how are investment properties subsequently measured? a) The cost…

A: International Accounting Standard 40 on Investment states that the investment property should be…

Q: If depreciable equipment is sold at a gain,

A: Investing Activity It is related to all activities that include non-current assets. Some of the…

Q: How should acquisition related costs such as due diligence and legal costs be accounted for?…

A: As per IFRS3, Acquisition costs such as Advisory cost, Accounting, and due diligence cost, Legal…

Q: 1. When reclassification is made from owner occupied property to investment property that will be…

A: Reclassification of owner occupied property to Investment property Treatment of gain or loss while…

Q: A right of use asset is initially measured at costs and subsequently measured using the  A. Cost…

A: An asset is the resource owned by the company for using it in the future.

Q: right of use asset

A: Correct Answer :- C Sale price

Q: If a firm's tangible assets are measured at their fair (intrinsic) value, one must forecast that…

A: Fair (Intrinsic) value: When the price of tangible assets such as buildings, machinery, etc. is…

Q: The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and…

A: Gain is booked when money is received on the sale of the asset. leasing back can be assumed to be…

Q: Under the impairment of assets, value-in-use is *   a. The undiscounted present value of future…

A: The impairment loss is recorded as an expense in the income statement of the company.

Q: Which of the following features of an asset closely links its definition to the scien Economics? A.…

A: Asset refers to any resource which is owned or controlled through the business and it is anything…

Q: A gain on the disposal of an asset indicates that the asset was sold for more than Its fair value.…

A: Lets understand the basics. When there is sale happens of asset then there is profit or loss arise.…

Q: Which one of the following is not true concerning the treatment of investment properties under LKAS…

A: Solution:     As per LKAS  40. the investment property is measured     at cost including…

Q: which of the following statements in relation to the cost of the asset is true? A. all of the…

A: The balance sheet represents the financial position of the business with assets, liabilities on a…

Q: Under which type of investment classification is directly attributable cost of acquisition is not…

A: Financial assets are highly liquid intangible assets that can provide future monetary benefits to…

Q: What is an impairment loss?   A ) The amount by which the carrying amount of an asset exceeds the…

A: An impairment loss is a recognized decrease in the par value of an asset caused by a deterioration…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A.…

A: Held for sale assets are those assets that are acquired for the purpose of sale in short period of…

Q: Which one of the following is an essential characteristic of an asset? A. The inflow of future…

A:

Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.

A: Investment property is land or a building (including a part of a building) or both that is: →held to…

Q: In which of the following areas does the IASB not allow firms to choose between two acceptable…

A: a. Measuring property, plant, and equipment subsequent to acquisition: This is an incorrect option…

Q: The following are properly classified as capital expenditure, except:

A: Capital expenditure is the amount spent by the business to acquire ,…

Q: According to historical cost principle, the assets and liabilities should be reported (tick…

A: Assets and liabilities are the part of the balance sheet of a company. They help in determining the…

Q: If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment…

A: IAS 40 is one of the accounting standard that is used for investment property. Investment property…

Q: Evaluate the following statements: S1. The borrowing cost is capitalized when the entity undertakes…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…