There are two identical properties are held for rental purposes. (I). One property may be classified as investment property if it can generate cash flows largely independently from other assets of an entity. (II). Another property may be classified as a Fixed Asset if it can only generate cash flows together with other assets of an entity. (III). An entity should treat them in the same classification for these two identical properties. How should the entity classify them?

a. II

b. III

c. I and Il

d. I

When an entity owns property that is leased to and occupied by, its parent or another subsidiary,
a. The property is not investment property in the entity's financial statements.
b. The property qualifies as investment property in the consolidated financial statements.
c. The property does not qualify as investment property in the consolidated financial statements.
d. All of these are not correct.

In agriculture activities, what items shall be included in profit or loss for the period in which they arise?

a. A gain or loss arising on initial recognition of agricultural produce at fair value less estimated point-of-sale costs.

b. All of these are correct.

C. A gain or loss arising from a change in fair value less estimated point-of-sale costs of a biological asset.

d. A gain or loss arising on initial recognition of a biological asset at fair value less estimated point-of-sale costs.

Answer rating: 100% (QA)

Answer 1 The correct option is C Explanation Be classified as investment prope... View the full answer