- 3 Marks
FR – Nov 2016 – L2 – Q2c – Financial Reporting Standards and Their Applications
Calculate the carrying amount of investment property in accordance with IAS 40.
Question
c) Tanoso owns the following properties as at 31 December 2015:
| Property | Fair Value (GH¢million) |
|---|---|
| Land with future use undetermined | 3.2 |
| Factory rented to Tanoso’s subsidiary under an operating lease | 2.4 |
| 10-floor office building (fair value is equal per floor), 3 floors used as the subsidiary’s head office, and 7 floors rented to third parties under an operating lease | 15.0 |
| Empty building held for capital appreciation, but not leased out | 4.1 |
Tanoso’s accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model.
Required:
In accordance with IAS 40 Investment Property, calculate the carrying amount to be recognised as investment property in Tanoso’s consolidated financial statements as at 31 December 2015.
Find Related Questions by Tags, levels, etc.
- Tags: Fair Value Model, IAS 40, Investment Property, Property Recognition
- Level: Level 2
- Topic: Financial Reporting Standards and Their Applications
- Series: NOV 2016
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