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- q13 According to IFRS, which accounting policy may an entity apply to measure investment property in periods subsequent to initial recognition? Select one: a. Fair value model or revaluation model. b. Cost model or fair value model c. Fair value model only. d. Cost model or revaluation model.If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment Property, when may it do so? Select one: a. When the market for these properties is fluctuation b. When the board of directors approves a change c. When the value of the assets will improve with a revised model d. When a change will result in a more appropriate presentation37. When an entity reduces its interest in an investment in equity securities accounted for by the equity method and changes in to the fair value method. What is the initial measurement of the investment for purposes of subsequent changes in market value? a. Carrying amount at the date of changea. Original costb. Market value at the date of changec. Market value at the date of acquisition
- 18. What is the proper treatment for noncash asset received from a stockholder? Group of answer choices a. The share premium shall be credited for the fair value of the noncash asset. b. The share premium shall be credited for the book value of the noncash asset. c. The income account shall be credited for the fair value of the noncash asset. d. The income account shall be credited for the book value of the noncash asset.An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE?* a. Both investments may be classified as Investment at Fair Value b. Both investments may be classified as Investment in Associate c. The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value d. The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in AssociateWhat is the meaning of the following:- IAS 40 paragraph 32A, An entity may: (a) choose either the fair value model or the cost model for all investment property backing liabilities that pay a return linked directly to the fair value of, or returns from, specified assets including that investment property; and (b) choose either the fair value model or the cost model for all other investment property, regardless of the choice made in (a).
- Which one of the following is not true concerning the treatment of investment properties under LKAS 40? Select one: a. If an investment property is held at fair value, this must be applied to all of the entity's investment property. b. A gain or loss arising from a change in the fair value of an investment property should be recognized in other comprehensive income c. Following initial recognition, investment property can be held at either cost or fair value d. An investment property is initially measured at cost, including transaction costs.An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE?* The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate Both investments may be classified as Investment in Associate Both investments may be classified as Investment at Fair Value6. What is the proper treatment for noncash asset received from a non-stockholder? Group of answer choices a. The share premium shall be credited for the fair value of the noncash asset. b. The share premium shall be credited for the book value of the noncash asset. c. The income account shall be credited for the fair value of the noncash asset. d. The income account shall be credited for the book value of the noncash asset.
- Which one of the following is not true concerning the treatment of investment properties under IAS 40? A Following initial recognition, investment property can be held at either cost or fair value. B If an investment property is held at fair value, this must be applied to all of the entity's investment property. C An investment property is initially measured at cost, including transaction costs. D A gain or loss arising from a change in the fair value of an investment property should be recognised in other comprehensive income.1. An entity has 25% investment in ordinary share and 20% investment in preference share over the investee. Which of the following is TRUE? a) Both investments may be classified as Investment in Associate b) The 20% may be classified as Investment at amortized cost and 25% may be classified as Investment at fair value c) Both investments may be classified as Investment at Fair Value d) The 25% interest may be classified as Investment at fair value and 20% may be classified as Investment in Associate 2. Purchases of merchandise inventories are always recorded net of: a) Trade discount b) Cash discount c) Sales discount d) Purchase discountUnder PFRS9, reclassification of investment in equity securities: A. Is allowed as long as it is based on a change in the entity's business model B. Is allowed, as long as the reclassification is made within the year the investment was acquired C. Is allowed, since the entity always has the option to carry the investment as either FVPL or FVOCI D. Is not allowed