1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the a. original cost. b. fair value. c. carrying amount. d. recoverable amount

1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the a. original cost. b. fair value. c. carrying amount. d. recoverable amount

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 5DQ

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the

a. original cost.

b. fair value.

c. carrying amount.

d. recoverable amount.

2. What could be a valid reason for transfers from investment property to property, plant and equipment?

a. When there is a change in use

b. based on the accountant's discretion

c. When the entity adopts the fair value model

d. when there is change in asset's life

3. An entity has an investment property that is held for rental income. The entity uses the fair value model for reporting the investment property. Which of the following statement is true?

a. changes in fair value are reported in profit or loss in the current period

b. changes in fair value are reported as an extraordinary gain

c. changes in fair value are reported in other comprehensive income for the period

d. changes in fair value are reported as deferred revenue for the period

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