CAF-1 · Chapter 4 · Question 7 of 15
Under IAS 40, which of the following of the following costs should NOT be included in the initial cost of an investment property?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Start-up costs, unless necessary to bring the property to a working condition.
Explanation
Start-up costs are excluded from the initial cost unless they are necessary to bring the property to the condition intended by management.
More IAS 40 Investment Property MCQs
- 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:
- Q13A property is leased to a subsidiary within the same group. In the consolidated financial statements, how is this property classified?