On January 1, 2018, Mion Company paid P2,000,000 for a property because of its potential as an
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Question:
On January 1, 2018, Mion Company paid P2,000,000 for a property because of its potential as an investment. It is estimated that the land component of the project would cost P800,000, while the building component will likely last for 50 years. According to local property indications, as of December 31, 2018, the property's fair value has increased to P2,200,000.
Required
Show how the property would be presented in the financial statement as a 31 December, 2018 in accordance with IAS 40 Investment Property if Mion adopts;
i. Cost Based Policy
ii. Fair Value Policy
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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