Real Estate Accounting

FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

Explain the treatment of three identical properties in the financial statements of Black Trust real estate and identify the applicable IAS for each; define property, plant and equipment under IAS 16, explain recognition criteria for PPE, and state five disclosure requirements under IAS 2 Inventories.

Question

Black Trust real estate (in the business of building and selling properties) owns three (3) identical properties, East Legon Hills, Dansoman and Kasoø New Town.

Dansoman is used as the head office of Black Trust. East Legon Hills is let to, and occupied by, a subsidiary. Kasoø New Town is part of the buildings constructed for sale.

You are required to: a. Explain how the three properties will be treated in the financial statements of Black Trust real estate and identify the International Accounting Standard that will be applicable for each of them. b. IAS 16 Property, Plant and Equipment deals with Accounting for Property, Plant and Equipment. i. With respect to IAS 16: Property, Plant and Equipment, define property, plant and equipment? ii. Explain the criteria for recognizing an item of property, plant and equipment. iii. State 5 disclosure requirements of inventory under IAS 2 inventory.

Answer

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Tags: Disclosure Requirements, IAS 16, IAS 2, IAS 40, Inventories, Investment Property, Property Plant Equipment, Real Estate Accounting, Recognition Criteria
Level: Level 3

Series: APR 2023

FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

Question

The objectives of IAS 40 – Investment Property is to prescribe the accounting treatment and disclosure requirements for investment property. The main issue in accounting for investment properties is to distinguish these properties separately from owner-occupier properties.

Required:
Explain how treatment of an investment property carried at fair value model differs from an owner-occupier property carried under revaluation model.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fair Value, IAS 40, Investment Property, Real Estate Accounting, Revaluation Model
Level: Level 2

Topic: Fair Value Measurement (IFRS 13)
Series: NOV 2015

FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

Explain the treatment of three identical properties in the financial statements of Black Trust real estate and identify the applicable IAS for each; define property, plant and equipment under IAS 16, explain recognition criteria for PPE, and state five disclosure requirements under IAS 2 Inventories.

Question

Black Trust real estate (in the business of building and selling properties) owns three (3) identical properties, East Legon Hills, Dansoman and Kasoø New Town.

Dansoman is used as the head office of Black Trust. East Legon Hills is let to, and occupied by, a subsidiary. Kasoø New Town is part of the buildings constructed for sale.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Disclosure Requirements, IAS 16, IAS 2, IAS 40, Inventories, Investment Property, Property Plant Equipment, Real Estate Accounting, Recognition Criteria
Level: Level 3

Series: APR 2023

FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

Question

Required:
Explain how treatment of an investment property carried at fair value model differs from an owner-occupier property carried under revaluation model.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fair Value, IAS 40, Investment Property, Real Estate Accounting, Revaluation Model
Level: Level 2

Topic: Fair Value Measurement (IFRS 13)
Series: NOV 2015

Question Tag: Real Estate Accounting

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FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

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FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

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FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

You're reporting an error for "FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)"

FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2

You're reporting an error for "FRPA – APRIL 2023 – L3 – Q2 – Property Treatment, IAS 16, and IAS 2"

FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)

Explaining the difference between accounting treatment for investment properties and owner-occupier properties under IAS 40 and revaluation model.

You're reporting an error for "FR – Nov 2015 – L2 – Q7a – Fair Value Measurement (IFRS 13)"

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