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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.
Option d. is the most appropriate choice...
d. Part of a building held to earn rentals.
(D) is the correct answer...........................
Agreed with Sir Mir Mujtaba Ali..option D is answer.
Yes, (d) is the right option.
It can only be (D), the building held to earn rentals.
Rentals must be from external parties of the group of companies.
d. Part of a building held to earn rentals. (rent from third parties or outside company)
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.
D IS THE ANSWER FOR THE Q.
i think d is more apropiate answer that part of the building held to earn rentals
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