Shiney Properties Bhd. has submitted a list of its properties (land and building) in Kelantan and Terengganu to you so that you can advise them whether the properties should be accounted for within the scope of MFRS 140-Investment Properties or MFRS 116-Property, Plant and Equipment. 

(a) Twenty acres of land in Kelantan in which 20% is used for its operating activities and the balance is rented out to outsiders. 

(b) A two-storey building in Terengganu is used as a warehouse for its inventory. 

(c) A 20-storey building in Kelantan, whereby three floors are used for office administration and business purposes and the balance is rented out to outsiders. 

(d) A piece of land in Terengganu, whereby 30% of it is rented out to outsiders and the balance is used as a site for its transportation facilities. 

(e) A seven-storey building in Kelantan, whereby the whole building is leased out to its subsidiary. Advise Shiney Bhd. on the appropriate accounting treatment for its properties in accordance with the relevant MFRSs.

Answer rating: 100% (QA)

Answer As Per MFRS 140 Investment Property is an Property held for the purpose ... View the full answer