SellCo sells a building to BuyCo for cash of CU1,800,000, which is its fair value at that date. The previous carrying value of the building is CU1,000,000. At the same time, SellCo enters into a lease with BuyCo conveying back the right to use the building for 18 years. Annual payments are CU120,000 payable at the end of each year, which is at market rate. The transfer qualifies as a sale based on the guidance on satisfying a performance obligation … Continue reading
What is Investment Property?
Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both. An investment property can be a long-term endeavor or an intended short-term investment such as in the case of flipping, where real estate is bought, remodeled or renovated, and sold at a profit.… Continue reading
Investment property – Introduction
16.1 Investment property applies to accounting for investments in land or buildings that meet the definition of investment property (See Definition and initial recognition of investment property – Owner and Lessee) and some property interests held by a lessee under an operating lease (see Definition and initial recognition of investment property – Lessee) that are treated like investment property. Only investment property whose fair value can be measured reliably without undue cost or effort … Continue reading
Introduction to Other Financial Instrument Issues
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Instruments in Other Financial Instrument Issues are more complex transactions measured at fair value, with changes in fair value in profit or loss with some hedges included in other comprehensive income by the section Conditions are met and some equity instruments at cost less impairment as per … Continue reading
In short an overview
Measurement is the process of determining the monetary amounts at which an entity measures assets, liabilities, income and expenses in its financial statements. Measurement involves the selection of a basis of measurement. IFRS in summary specifies which measurement basis an entity shall use for many types of assets, liabilities, income and expenses.… Continue reading