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Under IFRS, which of the following items is considered investment property?

a. Land held for use in the production or supply of

goods or services.

b. A building held for use for administrative purpose.

c. Land held for sale in the ordinary course of

business.

d. Part of a building held to earn rentals.

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Question added by Deleted user
Date Posted: 2015/02/28
Mohammed Hussain Shah
by Mohammed Hussain Shah , Finance Manager , Al-Naba Contracting Co. Ltd

Option d. is the most appropriate choice...

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

d. Part of a building held to earn rentals.

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

(D) is the correct answer...........................

Asif Hussain
by Asif Hussain , Accountant , Al Howail Company

Rental building is the best investment property

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Agreed with Sir Mir Mujtaba Ali..option D is answer.

Naeem Afzal
by Naeem Afzal , Accountant , Merhatta International Recruiting Agency

Yes, (d) is the right option.

Deleted user
by Deleted user

It can only be (D), the building held to earn rentals.

Rentals must be from external parties of the group of companies.

Naveen Moras
by Naveen Moras , Account Manager , Apex Group Ltd

d. Part of a building held to earn rentals. (rent from third parties or outside company)

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

Hiya, 

 

It's quite a good question, anyone can get tricked and think the answer as A, which is not the case. According to IFRS rules a land or a building held for capital appreciation or  to earn rentals or both is considered as Investment Property. Hence the answer is both C & D.

 

Some might argue with my answer for 'C' but as the land is not depreciated as it is consider as unlimited useful lives. So C is also an Investment Property.

 

aziz urrehman
by aziz urrehman , key account executive , alkhair group of companies foam manufacturing

D IS THE ANSWER FOR THE Q.

sudheer abbas
by sudheer abbas , Senior Accountant , SWCC Projects

i think d is more apropiate answer that part of the building held to earn rentals

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