CAF-1 · Chapter 4 · Question 9 of 15
If an entity chooses the cost model for its investment properties, what must it still disclose?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The fair value of the investment properties.
Explanation
IAS 40 requires all entities using the cost model to still measure and disclose the fair value of their investment properties in the notes.
More IAS 40 Investment Property MCQs
- 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:
- Q13A property is leased to a subsidiary within the same group. In the consolidated financial statements, how is this property classified?
- Q14If an entity uses the fair value model but cannot reliably determine the fair value of an under-construction investment property, what…
- Q15Which of the following is a general disclosure requirement for all investment properties under IAS 40?