Which one of thefollowing is not trueconcerning the treatmentof investment propertiesunder IAS 40? A. Following initial recognition,investment property can be heldat either cost or fair value.B. If an investment property isheld at fair value, this must beapplied to all of the entity'sinvestment property.C. An investment property isinitially measured at cost,including transaction costs.D. A gain or loss arising from achange in the fair value of aninvestment property should berecognised in othercomprehensive income.

Upon Initial recognition, the investment property shall be measured either at cost or fair value.…

Answered: Which one of the following is not true…

Business

Accounting

Which one of the following is not true concerning the treatment of investment properties under IAS 40?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 2QTD

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Concept explainers

Interest Rate

When you deposit your money with the bank, the deposit earns you some extra money at the end of the specific period – something more than what you deposited. That amount of money that the bank pays you for keeping the money with the bank is the “interest” and the percentage at which the bank pays you for your amount is called the “interest rate”.

Question

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.

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