Ex 4 How would you classify the following properties by IAS 40?

1. Question: You own a small apartment to rent out, but your tenant goes bankrupt. You are looking for another tenant and during your search, you use the apartment as your office. Investment or owner-occupied?

2. Question: You enter into a 30-year finance lease for a part of a building that you plan to let to your tenants.

3. Question: You run a hotel. Its main activity is to rent apartments and rooms on the short-term basis.

4. Question: A big investment company purchased a land deep under its fair value. As it was such a great bargain, the company is undecided what to do with the land either to sell it later or to develop some property on it. The decision will be taken in the later accounting period.

5. Question: You acquired a building under 30-year finance lease. You refurbished the offices and plan to sublet these offices, but you are awaiting approvals from the local authorities.

6. Question: You own an office building with 50 offices. You use 20 offices for your own consulting business and you sublet 30 offices to tenants.

7. Question: A subsidiary owns a building that fully leases out to its parent company. A parent company uses this building for own office space.