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

Q: How will we recognise any fair value gain arising from a change in fair value of an investment…

A: Investment Property:   An investment property is a property in the form of land or building that are…

Q: Which of the following elements represents an economic resource? B . Liability.

A: The variables being used to manufacture products or provide services are economic assets. That is to…

Q: What costs should be capitalized for a self constructed asset?

A:

Q: Define the term capital expenditure.

A:

Q: 28. If an entity as lessee presents as investment property a property interest held under an…

A: Lease- Lease agreements are contracts or instruments that transfer property from one person to…

Q: Which of the following does define investment property? a. Property held to earn rentals b. Right…

A: An investment property is first valued at its purchase price. The lower of the fair value of the…

Q: Define the term capitalized cost?

A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…

Q: Investment Property can be classified under the following methods except?   Cost Cost and Fairvalue…

A: Solution: Investment Property can be classified under the following methods except "Cost and Fair…

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: What are the differences between the cost and sales comparison approaches to appraising property?

A: If the cost approach is used, the appraiser set up an value for the location on which the…

Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…

A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…

Q: What is required to achieve their investment objective, investors generallymake outlays for various…

A: Tolerance of risk level It is the risk level in the market as due to frequent market fluctuation an…

Q: Required: Determine the cost of the development project that should be capitalized.

A: Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in…

Q: When it comes to accounting for investment property, which of the two models may an organization…

A: This question tells about accounting for investment property:

Q: Which two models may an entity opt for when accounting for investment property?

A: Investment property is a type of properly held by personnel for the intention of earning returns…

Q: In your own view, how important is asset allocation? Discuss the various strategies of asset…

A: Since each asset class comes with a different degree of risk, it becomes important to balance the…

Q: ing the investment is appropriately recognized as financial assets at amortized cost: Determine the…

A: Initial investment is the amount required to start a business or a project. It is also called…

Q: give the definition, recognition, measurement and derecognition of investment property

A: Speculation property are going to be property (tructure or part of a structure each) control (by the…

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: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…

A:

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: Explain how risk-return trade-off works in relation to residential and commercial property…

A: The rate of return is the change in the price of an asset, investment, or project over time and can…

Q: A choice of different measurement models can be applied to investment property, namely: the fair…

A: Investment property is the property which is held by the company or by any business which has been…

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: If an entity wants to account for investment property, it may choose between two accounting models.

A: The valuation of investment property is a must have feature in the presentation of the company’s…

Q: Access the glossary (“Master Glossary”) to answer the ­following. a.    What does it mean to…

A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…

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: Which of the following characteristics is most likely to diff erentiate investment propertyfrom…

A: Investment is a process of sacrificing the present income for the future return.

Q: right of use asset

A: Correct Answer :- C Sale price

Q: Compare the financial reporting of investment property with that of property, plant, andequipment

A: As per IFRS, investment property is the property owned only with the motive of earning capital…

Q: definition, recognition, measurement and derecognition of investment property.

A:

Q: Why is the cost of a lump-sum purchase allocated to the individual assets acquired?

A: It is necessary to allocate a lump sum purchase to individual assets in order to record a fair…

Q: Distinguish between revenue and capital expenditures, and account for them.

A: Meaning of Expenditure Expenditure is the amount of various expenses incurred for the operations of…

Q: Explain, using practical example how Capital expenditure should be capitalized?

A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…

Q: Distinguish between physical asset markets and financial asset markets.

A: Physical Asset markets are markets where buyers and sellers transact in tangible goods which can be…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

A:

Q: How can we determine the unit profit of operating an asset?

A: Operating income: Operating income measures the organization’s profitability (includes all incomes…