This is a test for Accounting and it is based on Investment Property and journal entries are central to this topic

1. DEPARTMENT OF ACCOUNTANCY
Accounting 2A
2013
Unit 3: Investment Property (IAS 40)
Index Page
A General 2
B Question relating to this topic 3

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A. GENERAL
1. INTRODUCTION OF THE TOPIC
Investment properties are non-current assets (land or a building or a part of a building or both) that
an entity controls and holds over a period of time (normally longer than one reporting period) to earn
rental income and/or gain from capital appreciation.
The main accounting issues are the timing of the recognition, the measurement of the carrying
amount, the choosing of an accounting model (historical cost or fair value) and the recognition
thereof.
During your first year you already learned how to:
recogniseand measure investment properties using the fair value model.
presentand disclose investment properties in financial reports.
During your second year these topics will be elaborated upon.
You must study the objective, scope and definitions of IAS 40.You must again study how to,
recognise, present and disclose investment properties in the required manner.
Revaluations are not discussed in Accounting 2A.
2. PRIOR KNOWLEDGE
Students should already be able toidentify, recognise, present and disclose investment properties in
the financial statements using the fair value accounting model.
3. RESOURCES
In order to master this topic you should make use of the following resources (and in the stated
order):
3.1 Chapter 4 Introduction to IFRS.
3.2 Class notes.
3.3 Questions in IFRS applications (refer section B).
3.4 Questions in the question bank (refer section B).

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4. STUDY OUTCOMES
After you have completed your studies of this topic you must be able to:
• explain the objective and scope of the statement;
 identify an investment property;
 differentiate between an investment property and an owner-occupied property;
 determine the cost price of an investment property at the acquisition date;
 understand that investment properties can be recognised by applying the cost model or the
fair value model, and be able to determine the carrying amount of investment property under
each of the models;
 recognise investment properties in terms of IAS 40 Investment property; and
 presentand disclose investment properties in financial reports.
5. EXAMINATION POSSIBILITIES
This topic will be assessed in any the following ways:
• theoreticalor application questions involving case studies;
• individual questions requiring specialised calculations of investment properties;
• journals to recogniseinvestment properties; and
• a Financial Statementsquestion involving identification, recognition, presentationand disclosure.
B. QUESTIONS RELATING TO THIS TOPIC
QUESTIONS IN IFRS APPLICATIONS
Do the following examples and questions:
Examples:
- Examples 40 (135).1 – Ignore tax implications
- Examples 40 (135).2

4. QUESTION
BANK