XYZ, a manufacturing company, purchases a property for Ghs1m on 1 January 2016 for its investment potential. The land element of the cost is believed to be Ghs 400,000 and the buildings element is expected to have a useful life of 50 years. At 31 December 2016, local property indices suggest that the fair value of the property has risen to Ghs1.1m. Requirement Explain how the property would be presented in the financial statements as at 31 December 2016 if XYZ adopts the: (i)        Cost model; and (ii)        Fair value model.

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As at 31 December 2020, Aura Plc has a development asset on its Statementof Financial Position of £378,000 in respect of Project Alpha. Project Alphacommenced on 1 July 2020 and costs have been incurred evenly since thatdate. All costs have been capitalised since 1 July 2020.When reviewing the financial statements ahead of year end, it was discoveredthat this project was only determined to be commercially viable from 1 August2020.Which journal entry is required to correct the financial statements of Aura Plcfor the year ended 31 December 2020?a) DEBIT Research costs- Income statement £63,000CREDIT Intangible assets £63,000b) DEBIT Research costs- Income statement £31,500CREDIT Intangible assets £31,500c) DEBIT Intangible assets £63,000CREDIT Research costs- Income statement £63,000d) DEBIT Research costs- Income statement £315,000CREDIT Non-current assets £315,000

Q Bookworm Co. chose to account for its investment property at fair value. During 2017, Bookworm Co. sold one of its investment properties for €80 million. The fair value of this investment property was €72 million, while its carrying amount on the date of sale was €60 million. How do you determine and recognize the gains or losses resulted from disposals of an investment property carried at fair value? Select the best response, and then click Submit. Gains or losses should be determined as the difference between the fair value and the net disposal proceeds of the asset at the date of disposal, and recognized in profit or loss. Gains or losses should be determined as the difference between the fair value and the carrying amount of the asset at the date of disposal, and recognized in other comprehensive income. Gains or losses should be determined as the difference between the net disposal proceeds and the carrying amount of the asset, and recognized in profit or loss in the period of…

Kingston Industries manufactures two types of computerized scoreboards, custom and standard, each of which involves three manufacturing processes, namely: cutting, assembly and packaging. The company uses an activity-based costing system to allocate its overhead cost to the manufacturing processes.   In using the activity-based costing system, the company uses four overhead activities; production set-up, procurement, quality control and materials management, in each production department.   An activity analysis of the overhead related to the cutting department revealed the following estimated costs and activity bases for the four overhead activities:   Activity                         Costs               Activity Base                                            $ Production set-up           43 200           Number of set-ups Procurement                 156 000           Number of purchase orders                  Quality control             175 000…

3M White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. halance sheet under Property, plant, and equipment. The appraisal value for the land (which On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the you can assume is the same as the recoverable amount) was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Land Value €3,150,000 €2,750,000 €2,850,000 P11-23 IFRS impairment and revaluation (LO 11-10) 2 Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.

1.2. KK Limited owns a property that is used as its head office in Pretoria. On 1st January 2020, its carrying value was R20 million and its remaining useful life was 20 years. On 1st July 2020, the business recognized cheaper premises found for use as the head office. It was therefore decided to lease the property under an operating lease. The property was valued by a qualified professional who assessed the property’s value as R21 million on 1st July and R21.6 million on 31st December 2020. Explain the accounting treatment of the property in the financial statements for the year ended 31st December 2020. (Hint: Income statement and SOFP extract including calculations

V6.  A company purchases land, building and equipment for $1,500,000. An independent appraisal shows that the best available indications of fair value at the time of purchase are: land: $760,000; building: $540,000; and equipment: $320,000. The purchase is financed through long-term debt. Required: Prepare the journal entry to record the purchase Prepare the journal entry to record the purchase:

An entity owns two investment properties, X and Y, the fair values of which are: 31 December 2006       31 December 2007 Property X                        15,000,000                    20,000,000 Property Y                        10,000,000                    8,000,000   The original cost of the properties was 9 million each when they were acquired on 1 January 2005. Both have an estimated useful life of 10 years. The entity uses the fair value model to value all its investment properties.   Required: a.) Compute for the total amount recognized in December 31, 2007 statement of profit or loss. b.) Compute for the total amount recognized in December 31, 2007 statement of financial position. c.) Provide the adjusting entry on December 31, 2007.

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