CAF-1 · Chapter 4 · Question 4 of 15
Which of the following properties is classified as an investment property under IAS 40?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Land held for undetermined future use.
Explanation
Land held for an undetermined future use is classified as investment property because it is regarded as held for capital appreciation.
More IAS 40 Investment Property MCQs
- Q6How should an entity account for a property that has both an investment property portion and an owner-occupied portion, if the portions…
- Q7Under IAS 40, which of the following of the following costs should NOT be included in the initial cost of an investment property?
- 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…