Quiz: How Well Do You Know IAS 40 Investment Property?

10 Questions | By Pradeepk812 | Updated: Nov 30, 2022 | Attempts: 3712

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Quiz: How Well Do You Know IAS 40 Investment Property? - Quiz

Property investment can be tricky, and sometimes people experience huge financial losses. We're curious just how well you know about IAS 40 investment property. Do you know enough about the concept to ace this quiz with ease? If yes, then we challenge you to give it a try! No cheating! All the questions in the quiz are compulsory, so read them carefully before answering. We hope that you have fun learning! All the very best!

Questions and Answers

1.

Under IAS 40, Investment Property, which additional disclosure must be made when an entity chooses the cost model as its accounting policy for investment property?
- A.
  
  The present value of the property
- B.
  
  The value in use of the property
- C.
  
  The net realisable value of the property
- D.
  
  The fair value of the property
2.

An entity has a factory which due to a decline in activity is no longer required and is now being held for sale. Is this an investment property?
- A.
  
  Yes
- B.
  
  No
3.

Farming land is purchased for its investment potential. Planning permission has not been obtained for building constructions of any kind. Is this an investment property?
- A.
  
  Yes
- B.
  
  No
4.

Which TWO of the following properties fall under the definition of investment property and therefore within the scope of IAS 40?
- A.
  
  Property occupied by an employee paying market rent
- B.
  
  A building owned by an entity and leased out under an operating lease
- C.
  
  Property being constructed on behalf of 3rd parties
- D.
  
  Land held for long term appreciation
5.

Which TWO of the following disclosures must be made when fair value model is adopted?
- A.
  
  Net gains or losses from fair value adjustments
- B.
  
  Useful lives or depreciation rates used
- C.
  
  The amount of impairment losses recognized
- D.
  
  Additions resulting from acquisitions through business combinations
6.

Which of the following assets can be classified as investment properties?
- A.
  
  Building leased
- B.
  
  Unoccupied building
- C.
  
  Land
- D.
  
  All of the above
7.

What are the standards for investment properties?
- A.
  
  IAS 40 and IFRS 16
- B.
  
  SMEs 17 and IFRS 40
- C.
  
  IAS 40 and SMEs 17
- D.
  
  None of the above
8.

What happens when an undertaking decides to dispose of an investment property without development?
- A.
  
  It is reclassified as owner-occupied
- B.
  
  It is transfer to inventory
- C.
  
  It continues to treat the property as an investment property
- D.
  
  None of the above
9.

Which of the following does not define investment property?
- A.
  
  A property that's held for capital appreciation
- B.
  
  Property held to earn rentals
- C.
  
  Property used in the production or supply of goods or services
- D.
  
  None of the above
10.

How should an investment property be measured?
- A.
  
  At it's fair value
- B.
  
  At it's deemed cost
- C.
  
  At it's cost
- D.
  
  None of the above