Theirs Company owns the properties below, which it leases out under operating leases to the following: Fair Value P 5,000,000 Renter subsidiary Building Machinery 800,000 Associate Condominium Unit--- 3,000,000 subsidiary Land 8,000,000 Associate In Theirs's consolidated statement of financial position, how much would be presented as investment property?
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- If an entity as lessee presents as investment property a property interest held under an operating lease then the entity 1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.Tajam Bhd has a subsidiary meeting the criteria of MFRS 5 to be classified as held for sale. This subsidiary has a disposal group held for sale with the following details: RM Goodwill Property, plant and equipment Intangible assets Investment property Carrying amount of the disposal group 40,800 112,000 64,000 33.960 250,760 The following information are relevant to the disposal group: The investment property is measured by using the fair value model, and its fair value is RM30,000 at the date of the disposal group being reclassified as held for sale under MFRS 5. Other assets have already been re-measured in accordance with the applicable accounting standards before the reclassification as held for sale. The fair value less costs to sell of the disposal group is RM200,000. Required: Evaluate the financial implication of the reclassification of the disposal group as held for sale.The following pertains to Connie Corp's biological assets: Fair value based on unobservable inputs for the asset P4,900 Quoted price in an active market for similar asset P5,400 Quoted price in an active market for identical asset P5,300 Selling price in a binding contract to sell P5,600 Estimated commissions to brokers and dealers P500 Estimated transport and other costs necessary to get asset to the market P300 The entity’s biological assets should be valued at
- 28. If an entity as lessee presents as investment property a property interest held under an operating lease then the entity has the option of measuring some items of investment property using the cost model. shall measure in the financial statement all of its investment property using the fair value models shall measure that leased property interest under O the fair value model and the remaining investmen property using the cost model. shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.You Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021Land -------- P 10,000,000 ----- P14,000,000 -------P15,500,000Building ----- 20,000,000 ------ 9,000,000 -------- 8,500,000 On December 31, 2021, the company decided to use the land and building for its operations. At what amount should the land and building be recorded on December 31, 2021?He Company owns land and building classified as investment property . The land and building is being leased out under operating leases. The company uses the fair value model for all its other investment property. Data relating to the land and building follows: Cost FV Dec. 31, 2020 FV Dec. 31, 2021 FV Dec. 31, 2021Land -------- P 10,000,000 -- P14,000,000 -------P15,500,000 ------- P 17,000,000Building ----- 20,000,000 --- 9,000,000 -------- 9,500,000 ------- 10,000,000 How much fair value gain should He company report in profit or loss for year 2021?
- In some commercial property operating agreements, investors are scheduled to receive their “pro rata” share of all cash flow distributions. Based on your understanding of what is meant by a “pro rata” distribution, an investor that contributed 1/10 of the required equity investment would be entitled to receive what proportion of all future cash flows?A property is classified as investment property if Question options: a it is leased out under a finance lease b the owner-occupied portion of the property is significant. c the entity provides relatively insignificant ancillary services (e.g., security, janitorial services, and the like) to the occupants of the property. d it is rented between a parent entity and a subsidiary and consolidated financial statements are prepared for the groupInvestment Property: Recognition: The following are being considered for classification under Investment Property by ABC Retailer Incorporated. Which should be included and what is correct balance for the account? a. Land held for undetermined use – P 4,000,000 b. Manufacturing plant – P 5,000,000 c. Vehicles rented out for additional income – P 3,000,000 d. Land plus building under construction to be rented out under an operating lease – P6,000,000 e. Investment Property, balance
- 5. During the period, Entity A, government entity, decides to use as an office one of its building that has previously been leased out under various operating leases on commercial basis. Information on the investment property is as follows: Investment property – Building Accumulated depreciation P1,000,000 800,000 At the date of change in use, the fair value of the investment property is P250,000. How much is the gain (loss) on the transfer? a. 50,000 b. (50,000) c. 0 d. A transfer is prohibited. eparing your question to be sent to tutors.which of the following are fixed assets? Financial assets at fair value through profit or loss Interests in and advances to joint ventures, co-venturers and associates Property, plant and equipment Right-of-use assets Investment properties Trademarks, goodwill and other intangible assets Operating lease receivables Finance lease receivablesHow much should be recorded as the purchase price of theindividual PPE items: For items 6 to 10, identify the amount to be include as Land 6. Cost of option to the land – P20,000 7. Legal fees and other expenditures for establishing clean title– P100,000 8. Mortgage assumed: Total mortgage – P2,000,000,Remaining mortgage as of acquisition date – P 500,000 9. Real property tax not paid by seller and assumed by theentity, P50,000 due January of current year. Buyer‐entityacquired the land on April 30 of the current year. 10. Special assessment paid to the government – P300,000 11. Fence and landscaping – P500,000