Investor Presentaiton
LKAS 40 - Investment property
Questions
Hand-out 1
Question 3
See View Ltd has interests in three investment properties:
Property A- was constructed by See View Ltd - the fair value of this property is not
reliably determinable on a continuing basis
.
-
Property B It is held by See View Ltd under a finance lease; and
·
Property C is held by Sea View Ltd under an operating lease
Assuming all three properties have been properly classified as investment
property, which model should be used for the measurement of them after initial
recognition
Question 4
During the year ended 31 December 2015, an entity held interest in four investment properties
at fair value.
Relevant financial information is set out below:
Property
A
B
C
D
FV @ 1/1/2015 FV at transfer
Proceeds of
sale
FV @
31/12/2015
100
n/a
n/a
140
98
89
n/a
80
210
118
n/a
218
n/a
n/a
n/a
112
During the year:
.
Property B became an owner occupied and was transferred to property, plant and
equipment
Property C was sold
What amount should be included in profit or loss as the fair value change of
investment properties for the year ended 31 December 2015?
Question 5
Regent Ltd owns an investment property which leases on a furnished basis and account for it
using the FV model.
At 1 January 2015 the property had a carrying value of Rs 258million including Rs 23 million
relating to furnishings. During 2015 Regent Ltd replaced the furnishings at a cost of Rs 62
million. At 31 December 2015 the fair value of the furnished property was Rs 339 million.
What amount should be replaced within profit or loss for the year ended 31
December 2015 for this property?View entire presentation