CAF-1 · Chapter 4 · Question 6 of 15
How should an entity account for a property that has both an investment property portion and an owner-occupied portion, if the portions can be sold separately?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Account for the portions separately.
Explanation
If portions of a property can be sold separately, an entity accounts for the investment and owner-occupied portions separately.
More IAS 40 Investment Property MCQs
- Q8Under the fair value model for investment property, how are changes in fair value treated?
- Q9If an entity chooses the cost model for its investment properties, what must it still disclose?
- Q10When an entity transfers an investment property carried at fair value to owner-occupied property (PPE), what is the deemed cost for…
- Q11An entity transfers an owner-occupied property to investment property to be carried at fair value. At the transfer date, the fair value…
- Q12When an investment property is disposed of, the gain or loss is calculated as the difference between: