14 A government entity accounts for transfers to or from investment property at cost, no gain or loss shall arise from the transfer except when an asset is impaired. Group of answer choices True False
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14
A government entity accounts for transfers to or from investment property at cost, no gain or loss shall arise from the transfer except when an asset is impaired.
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False
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- Transfers from investment property to property, plant and equipment are appropriate a. The entity can never transfer property into another classification on the balance sheet Once it is classified as investment property. b. When there is change of use. c. Only when the entity adopts the fair value model under IAS 38. d. Based on the entity’s discretion.Discuss with examples TWO (2) indicators that may require an entity to reduce the value of their assets in accordance to MFRS136 Impairment of Assets.Which of the following assets held by an enterprise would not qualify as investment in property as defined by PAS 40, Investment property? Land for sale in the ordinary course of business Land held for capital appreciation Land held for undetermined future use Building held to earn rentals Which of the following is included in the definition by PAS 20 of government grants?I. Transfer of resources to an entity in return for past or future compliance with certain conditions.II. Transactions with the government that cannot be distinguished from the normal trading transactions of the entity. II only I only Both I and II Neither I and II Which of the following would result in a Dr to AR? Sale of goods under " special order" "Special order is yet to be completed" Sale of goods classified as Trade Sale of goods under "Consignment" Sale with a right of repurchase
- Why is IAS 36 Impairment of Asset not applied to an investment property measured under the fair value model in accordance with IAS 40 Investment Properties? Provide answers to the questions raised by the finance assistant in accordance with relevant accounting standards.8. Income is: a. An amount for payment of services, interest, or profit from investment b. The gain derived from capital or labor c. Any material gain, not otherwise excluded by law, realized out of a closed and completed transaction, where there is an exchange of economic value for economic value, with a specified taxable period, under the method of accounting employed. d. A flow of service rendered by capital by the payment of money from it or any other benefit rendered by a fund of capital in relation to such fund through a period of time.Entity A receives land from the government conditioned that the land will only be used in Entity A’s primary business activities and should never be sold. If in case, Entity A decides not to use the land in its primary business activities, it shall return the land to the government. Which of the following standards is least likely to be relevant in accounting for the land? a. PAS 2 PAS 16 PAS 20 All of these are relevant
- Land held for currently undecided future use or for speculation should be reported as property, plant and equipment. According to PAS 16 an item in PPE acquired through purchase is initially recognized at fair value. A PPE acquired from donation is initially recognized at the fair value of the asset given up. Which of the above statements are false? I and II only II and III only I and III only All are false40 When reclassification is made from owner-occupied property to investment property that will be carried at fair value, the excess of the fair value over the carrying value at the date of transfer is a. ignored b. recognized as gain on transfer c. credited to revaluation surplus d. debited to loss on transferMultiple choice question What is the rule regarding depreciation of federal capital assets classified as general property plant and equipment (General PP&E)? Select one: a. Federal agencies have the option of depreciating or not depreciating General PP&E. b. General PP&E is capitalized and depreciated only for federal business-type activities. c. All General PP&E is capitalized and depreciated. d. All General PP&E is expensed at the time of acquisition.
- 1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the a. original cost. b. fair value. c. carrying amount. d. recoverable amount.2. What could be a valid reason for transfers from investment property to property, plant and equipment? a. When there is a change in use b. based on the accountant's discretion c. When the entity adopts the fair value model d. when there is change in asset's life3. An entity has an investment property that is held for rental income. The entity uses the fair value model for reporting the investment property. Which of the following statement is true? a. changes in fair value are reported in profit or loss in the current period b. changes in fair value are reported as an extraordinary gain c. changes in fair value are reported in other comprehensive income for the period d. changes in fair value are…Section 1221(a) of the Internal Revenue Code defines what: a. is a capital asset. b. is not a capital asset. c. is a ordinary gain. d. is capital gain
