IMG owns a number parcels of land. The land is held by IMG for future development purposes

Question:

IMG owns a number parcels of land. The land is held by IMG for future development purposes (no intention to sell). IMG accounts for its land using the revaluation model under IFRS. The below graph summarizes the fair-value changes for the land owned for the past 5 years.

IMG Fair Value of Land Owned

Required:

Interpret the graph in relation to the fair-value changes of the land owned by IMG. Explain how the fair-value changes for each parcel of land would be recognized in the financial statements.

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Intermediate Accounting Volume 1

ISBN: 9781260881233

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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Question Posted: Aug 15, 2022 05:21 AM

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IMG owns a number parcels of land. The land is held by IMG for future development purposes

Question:

7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 20x2 20x3 Land A01 20x4 Land A02 Land A03 20X5 Lend A4 20X6

Step by Step Answer:

The graph tracks changes in fair value and presents the gain losses on land The following can be int...View the full answer

Intermediate Accounting Volume 1

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