INVESTMENT PROPERTY

Let’s Check

1. _____________ The account used for the difference between the carrying amount

and fair value if owner-occupied property is to be transferred as investment property

under fair value model. Revaluation

2. ___________ Examples of these are commencement of owner occupation,

Commencement of development with a view to sale, end of owner-occupation,

commencement of an operating lease from owner-occupied property to investment

property. Change of use

3. ____________ When the fair value of the investment property increased

compared to its carrying amount at the start of the year, what is the treatment of the

amount of difference? Gain from change in fair value

4. ____________ from disposal of investment property is the excess of the net

disposal proceeds after deducting the carrying amount of the investment property.

Gain

5. ____________ When an investment property is carried at fair value, any changes

in the fair value is reported in _____________ statement. Income Statement

6. ____________When cost model is used by an entity, transfers between

investment property, owner-occupied property and inventory shall be made at this

amount. Carrying Amount

7. ____________ Under this model, transfers from investment property shall be

made at fair value. Fair Value Model

8. ____________This subsequent measurement of investment property carries the

investment at cost less accumulated depreciation and accumulated impairment

losses with Fair value disclosure. Cost Model

9. ___________ It refers to land or buildings held primarily to earn rentals or for

capital appreciation. Investment Property

10. ____________ from disposal of investment property is the excess of the net

disposal proceeds after deducting the carrying amount of the investment property.

Gain

True or False: Write true if the statement is correct and false if the statement is

wrong.

11. Property that is leased to another entity under a finance lease is an example of

investment property. False

12. Property held for future us as owner occupied property is an example of

investment property. False

13. An investment property held by a lessee as a right of use asset shall be

recognized in accordance with IFRS 16. True

14. The cost of an investment property is not increased by startup costs (unless they

are necessary to bring the property to the condition necessary for it to be capable of

operating in the manner intended by management. True

15. The cost of an investment property does include operating losses incurred

before the investment property achieves the planned level of occupancy. False
16. The cost of an investment property held by a lessee as a right-of-use asset is

measured initially at cost in accordance with IAS 40. False