Why allow the fair value option for financial assets and liabilities and not for, say, buildings or land?

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: Explain the Costs of Defending Intangible Rights.

A: Intangible assets are the assets that cannot be seen physically, but its' presence in business have…

Q: Why might the actual holding period for a property be different from the holding period that was…

A: The consideration while anticipating holding period: 1.The rental from the property. 2.The rate at…

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

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

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: Present an argument to support the idea that your company’s land should not be depreciated, even…

A: Depreciation seems to be an accounting technique for distributing a physical or material asset's…

Q: Why should investors be concerned about market rents if they are purchasing a property subject to…

A: Lease is an agreement by which one party agrees to use the property such as land or building of…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

Q: a) Why would a DRC (Depreciated Replacement Cost) valuation not normally be acceptable for secured…

A: When the physical deterioration or any other obsolescence of the assets is deducted from the current…

Q: What is an option contract? How is it used in the land acquisition? What should developers be…

A: A contract amongst a seller and buyer, under which the option buyer has the right to sell or…

Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.

A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…

Q: Why is the cost of certain kinds of property not recoverable at all by way of de-preciation,…

A: Cost of some assets are not recoverable because of the main reason that these assets do not qualify…

Q: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: Under U.S. GAAP, what alternatives do companies have to value their property, plant,and equipment?

A: According to US GAAP, the Property,plant & equipment are to be recognized and measured only…

Q: When valuing specific properties investors must consider?

A: Valuation of the real estate properties includes the estimation of the rental payments that are…

Q: Are tax considerations important in renovation decisions?

A: Introduction: An income property can be well-defined as the property that has been acquired or…

Q: Which movable assets those are not considered as leasehold improvements?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

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: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: 17. Which of the following amounts shall not be recognized in profit or loss with respect to…

A: Rental Income from the Investment property shall be recognized in the profit and loss statements as…

Q: What items are excluded from the statutory definition of Capital Asset? Why?

A: Capital assets are assets which may or may not connect with the business and include all tangible or…

Q: How do businesses account for depletion of natural resources? What is the relevant AASB regarding…

A: SOLUTION- NATIONAL RESOURCES (NR) ARE ASSETS IN THE FORM OF INVENTORIES FOR COMPANIES WHOSE MAIN…

Q: Explain term Foreclosure?

A: Foreclosure:

Q: hat situational circumstances can the Asset-based valuation be

A: Valuation is the process of determining the fair market value of a company's assets or operations.…

Q: Why was land registration a critical issue in maintaining property rights?

A: The primary goal of property rights, as well as their primary accomplishment, is to eliminate…

Q: Land is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?

A:

Q: For purposes of capitalization of borrowing cost, which of the following is not a qualifying asset?…

A: IAS 23 is one of the accounting standard which is used for borrowing costs. This standard specifies…

Q: Land is not considered as a depreciable property.Why

A: Fixed assets:   These are the types of assets owned by the business that is expected to provide an…

Q: Given the frequently changing nature of depreciation and tax law,what must we use?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Explain how differing assumptions about capitalization rate , reversion value, and highest and best…

A: Property is referred as an item, where the business or person used to have the legal title over.…

Q: Why does the so-called distressed property situation exist?

A: Distressed property refers to those which have value less than the market value. This situation…

Q: Describe why allow the fair value option for financial assets and liabilities and not for buildings…

A:

Q: What should be the pattern of amortization for a limited-life intangible?

A:

Q: What are the goals of asset & liability management (ALM)?

A: Assets are the resources owned or control by an entity to produce economic value in the coming…

Q: Why is the cost of certain kinds of property not recoverable at all by way of depreciation,…

A:

Q: What is the cost of right of use of asset?

A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…

Q: Describe the Costs of Defending Intangible Rights.

A: Introduction Intangible assets are the assets that cannot be seen physically, but its' presence in…

Q: Explain Alternatives to Foreclosure?

A: Assets can be mortgaged by borrower with the lender to secure debt. Foreclosure is a process…

Q: nd u

A: Yes, there items of private properties that should be own privately like home and land and…

Q: hen should you present your biological asset as current or non-current asset? Or what is/are the…

A: Biological assets are the ones that are counted as resources in the agriculture business. They are…

Q: True or False?

A: Meaning of Right of use asset The right of use asset is recorded by the lessee in the balance…

Q: Define the term the depreciable life of the asset?

A: Depreciation  is an accounting process through which allocation of an asset’s cost during its useful…

Q: Which of the following is not a characteristics of an investment property?     a. land and/or…

A: Investment Property are accounted as per the guidance provided under IAS 40, Investment Property.