MFRS140-INVESTMENT PROPERTY

QUIZ

PREPARED BY:

MFRS 140 INVESTMENT PROPERTY

1. NUR'ALIAH ZAHIDAH BINTI ZA'ABAR (2019414284) 2. FARRAH NASREENA BINTI MUKRIZAM (2019276794) 3. AWATIF BINTI AMINUDDIN (2019215988) 4. NATASYA NABILA BINTI MOHAMAD SHUKRI (2019243578) 5. NURIN NASHMI AQILAH BINTI SYAIRUL FAHMI (2018243548)))

START

QUIZ

Part 1

MFRS 140 INVESTMENT PROPERTY

START

1/5

Definition of Investment Property (MFRS 140)

• Land or building held to gain rental income
• Land or building held for long term capital appreciation

True

False

2/5

Subsequent measurement available under MFRS 140 Investment Property are :

01

Straight Line Method Model

02

Revaluation Model

False

True

3/5

Initial measurement at its cost-costs include purchase price, and any directly attributable expenditure.

False

True

4/5

The company owned a two-storey building which occupied by its employees and received total rental payment of RM2,000 per month from the employess. This statement shows it is under Investment Property.

True

False

5/5

Recognition of investment property includes relevant information, faithful representation and information that results in benefits exceeding the cost of providing that information.

False

True

Congratulations!

You did it !

Now, let's move to part 2

QUIZ

MFRS140

INVESTMENT PROPERTY (PART 2)

START

QUESTION 01 of 05

AT THE DATE OF TRANSFER/CHANGE THE VALUE USE WILL BE THE FAIR VALUE. SUBSEQUENTLY THE TREATMENT WILL BE ACCORDING TO MFRS116. THE ACCOUNTING TREATMENT SHOWS TRANSFER FROM

MFRS116 TO MFRS140

MFRS140 TO MFRS116

MFRS140 TO MFRS102

QUESTION 01 of 05

RIGHT!

NEXTQUESTION

QUESTION 02 of 05

MAGICAL LAND OPERATES A WATER THEME PARK IN JITRA, KEDAH. ON 1 JANUARY 2020, THE COMPANY PURCHASED A LAND COSTING RM1,500,000 BEFORE ANY DISCOUNTS. THE LAND WILL BE USED TO EXTEND THE THEME PARK ATTRACTIONS AND FACILITIES. OTHER INFORMATION RELATED TO THE PURCHASE OF LAND INCLUDE:1. THE SELLER ALLOWED RM70,000 DISCOUNT TO THE COMPANY.2. LEGAL FEES, TITLE TRANSFER FEES AND SURVEYING COST AMOUNTING RM50,000.3. SINCE THE LAND WAS COVERED WITH RUBBER TREES, THE COMPANY INCURRED RM100,000 CLEARING COST.4. THE RUBBER TREES CUT DOWN WERE SOLD TO A LOCAL FURNITURE MANUFACTURING COMPANY FOR RM40,000. CALCULATE THE INITIAL COST OF THE LAND.

RM1,540,000

RM1,760,000

RM1,620,000

QUESTION 02 of 05

RIGHT!

NEXTQUESTION

QUESTION 03 of 05

LEGACY HOTEL BHD OWNED A FEW HOTELS IN MALAYSIA. IN AN EFFORT TO IMPROVE ITS FINANCIAL POSITION, LEGACY HOTEL BHD DECIDED ON 1 JULY 2020 TO RENT OUT ONE OF ITS HOTELS IN KUALA LUMPUR UNDER AN OPERATING LEASE FOR THE AMOUNT OF RM1,500,000 PER YEAR. THE HOTEL WAS ACQUIRED ON 1 JANUARY 2017 AT A COST OF RM650,000 WITH AN ESTIMATED USEFUL LIFE OF 40 YEARS. THE FAIR VALUE OF THE PROPERTY ON 1 JULY 2020 WAS RM610,000. IT IS THE POLICY OF LEGACY HOTEL BHD TO ADOPT THE FAIR VALUE MODEL IN THE MEASUREMENT OF ITS INVESTMENT PROPERTY. THE COMPANY’S FINANCIAL YEAR END IS ON 31 DECEMBER EACH YEAR. HOW MUCH IS THE RENTAL INCOME TO BE RECORDED IN SOPL AS AT 31 DECEMBER 2020 ?

RM1,460,000

RM750,000

RM1,500,000

QUESTION 03 of 05

RIGHT!

NEXTQUESTION

QUESTION 04 of 05

TRANSFERS ARE MADE WHEN THERE IS A CHANGE IN USE. IN TRANSFER FROM MFRS116 PPE TO MFRS140 IP, WHAT IS THE PROOF OF CHANGE IN USE?

COMMENCEMENT OF DEVELOPMENT WITH A VIEW TO SALE

COMMENCEMENT OF OWNER-OCCUPATION

END OF OWNER OCCUPATION

QUESTION 04 of 05

RIGHT!

NEXTQUESTION

QUESTION 05 of 05

WHICH OF THE FOLLOWING IS DIRECTLY ATTRIBUTABLE COST ?

REVALUATION MODEL

GENERAL ADMINISTRATIVE

pROFESSIONAL FEES

QUIZ COMPLETE

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