Borrowing costs, grants and investment properties - ACCA (SBR) lectures
YouTube video
15 Comments
T
Tom·
Hello,
I have a question to Fair value model of investment properties.
In your notes there are three point under subsequent measurement
1) The investment properties are revalued to fair value at each reporting date
2) Gains or losses on revaluation are recognised directly through profit or loss
3) The properties are not depreciated
I looked into IAS 40 standard to confirm point 1, because I was not sure if the investment properties should be revalued to fair value at each reporting date:
https://www.ifrs.org/issued-standards/list-of-standards/ias-40-investment-property/
and I do not see any paragraph stating that investment properties should be revalued to fair value.
Can you explain in which paragraph the time frequency of fair value measurement is mentioned, please?
M
mrjonbainModerator·
I would encourage you to use the ask the tutor forums if you want a direct response from the tutor.
M
mrjonbainModerator·
I think the relevant paragraph is the following- 33 " After initial recognition, an entity that chooses the fair value model shall measure all of its investment property at fair value, except in the cases described in paragraph 53" I believe this is the relevant paragraph even though it does not specifically write that revaluation need to take place at each reporting date.
D
Dineli·
hi are these lecture videos upto date for the Sep-24 to June 25 sitting?
A
Aditya·
Thanks for the lectures. You indeed are 21 years old. Your obsession with sausages is incredible.
P
Philippa·
Very helpful lecture! I just have a couple of queries on Investment Properties (for completeness)
1. If the PPE were held at Fair Value (instead of Cost), when it changes to an investment property (also at FV), does the gain still go to OCI?
2. If the company WERE to change the investment property back to PPE, would the gain/loss go to P&L or OCI?
Many Thanks
L
Luqman·
I am wondering why the 1.5 is taken to OCI. I think the revaluation surplus as of the time of transferring to I.P has been realized; hence, should be taken to P&L. Moreover, there will not be any further evaluation, especially, a loss that can then cancel the revaluation gain earlier recorded.
Finally, at what point will the 1.5 in revaluation reserve be realized or taken to P&L?
Thanks.
A
Andrew·
in example 5, why has depreciation been shown as a positive figure and amortisation shown as a negative figure? Shouldn't both depreciation and amortisation be subtracted, giving a P+L figure of (1.2) not (0.8)?
T
tatianatap·
duncana,
Amortisation here is recognition of annual portion of deferred income, so it is an income line, that is positive figure.
Depreciation is a standard expense, that is negative figure.
F
Felix·
Please how can i get tutorial questions to solve
F
Faisal·
Hi,
If the loan was funded for the project then why is it not 9/10 months rather than 9/12 months. It does not state anywhere the loan was made available in January.
Or should we assume it is always for a full year unless stated.
Please can you respond.
N
nonobe887·
is general borrowing cost capitalized or expensed as finance cost
P
P2-D2Tutor·
It is capitalised when the criteria are met.
Thanks
T
Tracy·
Would watching all these lectures be enough since they are all based on P2 material?
Thanks
P
P2-D2Tutor·
Hi,
If the video is still on here then it will be suitable. We will eventually re-record them all so that P2 is not mentioned but given that there is no huge difference to how the accounting standards are examined then we haven't re-recorded anything just yet.
I have a question to Fair value model of investment properties.
In your notes there are three point under subsequent measurement
1) The investment properties are revalued to fair value at each reporting date
2) Gains or losses on revaluation are recognised directly through profit or loss
3) The properties are not depreciated
I looked into IAS 40 standard to confirm point 1, because I was not sure if the investment properties should be revalued to fair value at each reporting date:
https://www.ifrs.org/issued-standards/list-of-standards/ias-40-investment-property/
and I do not see any paragraph stating that investment properties should be revalued to fair value.
Can you explain in which paragraph the time frequency of fair value measurement is mentioned, please?
1. If the PPE were held at Fair Value (instead of Cost), when it changes to an investment property (also at FV), does the gain still go to OCI?
2. If the company WERE to change the investment property back to PPE, would the gain/loss go to P&L or OCI?
Many Thanks
Finally, at what point will the 1.5 in revaluation reserve be realized or taken to P&L?
Thanks.
Amortisation here is recognition of annual portion of deferred income, so it is an income line, that is positive figure.
Depreciation is a standard expense, that is negative figure.
If the loan was funded for the project then why is it not 9/10 months rather than 9/12 months. It does not state anywhere the loan was made available in January.
Or should we assume it is always for a full year unless stated.
Please can you respond.
Thanks
Thanks
If the video is still on here then it will be suitable. We will eventually re-record them all so that P2 is not mentioned but given that there is no huge difference to how the accounting standards are examined then we haven't re-recorded anything just yet.
Thanks