{"entries":[{"key":"LX.IAS40.000001","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"REAL_ESTATE","tested_point":"PURPOSE_OF_STANDARD","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"understand"},"references":["IAS 40 §1"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The standard covers recognition, measurement and disclosure (IAS 40).","es":""},"common_error":{"fr":"","en":"Thinking the standard also governs consolidation.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"IAS 40 prescribes the recognition, {{b1}} and disclosure of investment property.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"measurement","es":""}},{"id":"b","text":{"fr":"","en":"consolidation","es":""}},{"id":"c","text":{"fr":"","en":"taxation","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000002","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"SCOPE_COVERAGE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"rule-scope"},"references":["IAS 40 §2","IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"Which subjects fall within the scope of IAS 40? Several answers.","es":""},"explanation":{"fr":"","en":"The scope covers recognition, measurement and disclosure (IAS 40); the definition of investment property includes a right-of-use asset held as an investment (IAS 40).","es":""},"common_error":{"fr":"","en":"Mixing the scope with other standards that touch the same asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Calculation of the company's income tax","es":""},"correct":false,"feedback":{"fr":"","en":"Income tax is governed by another standard, not IAS 40.","es":""}},{"id":"B","text":{"fr":"","en":"Recognition of investment property","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Disclosures about these properties","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Right-of-use assets held as an investment","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000003","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.GENERAL","IAS40.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"IN_SCOPE_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"example"},"references":["IAS 40 §2","IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"Classify each item: within the scope of IAS 40 or outside it.","es":""},"explanation":{"fr":"","en":"A right-of-use asset held as an investment falls within the definition of investment property (IAS 40); biological assets and mineral rights are excluded (IAS 40).","es":""},"common_error":{"fr":"","en":"Excluding the right-of-use asset because the entity is not the owner.","es":""},"format":"CLASSIFICATION","categories":[{"id":"in","text":{"fr":"","en":"Within the scope of IAS 40","es":""}},{"id":"out","text":{"fr":"","en":"Outside scope (other standard)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Warehouse let to a haulier to earn rentals","es":""},"category":"in"},{"id":"i2","text":{"fr":"","en":"Right-of-use asset over a floor held to sub-let","es":""},"category":"in"},{"id":"i3","text":{"fr":"","en":"Growing plantation of fruit trees (biological asset)","es":""},"category":"out"},{"id":"i4","text":{"fr":"","en":"Mineral rights over a deposit","es":""},"category":"out"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000004","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EXCLUSION_MINERAL_RIGHTS","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"exclusions"},"references":["IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"A mining group holds rights over a deposit and an office building let to third parties. Which asset falls under IAS 40?","es":""},"explanation":{"fr":"","en":"Only the let building is investment property; mineral rights are excluded (IAS 40).","es":""},"common_error":{"fr":"","en":"Judging scope by the entity's industry.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rights over the deposit","es":""},"correct":false,"feedback":{"fr":"","en":"Mineral rights and reserves are excluded from scope (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"The let office building","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both, because the entity is a group","es":""},"correct":false,"feedback":{"fr":"","en":"Scope depends on the nature of the asset, not on the entity's status (IAS 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000005","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"ROU_IN_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"rule-scope"},"references":["IAS 40 §2","IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"A lessee holds, under a lease, the right to use a property it sub-lets to earn rentals. Which standard covers its treatment as an investment?","es":""},"explanation":{"fr":"","en":"The definition also covers right-of-use assets held as an investment (IAS 40).","es":""},"common_error":{"fr":"","en":"Reserving the standard for the legal owner.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: only the legal owner applies IAS 40","es":""},"correct":false,"feedback":{"fr":"","en":"The definition includes right-of-use assets held as an investment (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 40, because a right-of-use asset held as an investment is in scope","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 41, because the sub-lessor carries on a service activity","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 41 concerns biological assets, unrelated to sub-letting (IAS 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000006","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.GENERAL","IAS40.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"SCOPE_VS_CLASSIFICATION","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"pitfalls"},"references":["IAS 40 §2","IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the scope of IAS 40.","es":""},"explanation":{"fr":"","en":"The scope covers investment property, whose definition includes right-of-use assets held as an investment (IAS 40), excluding biological assets and mineral rights (IAS 40).","es":""},"common_error":{"fr":"","en":"Confusing scope with the holder's legal status.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"The scope of IAS 40 includes right-of-use assets held as an investment.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"A let property is outside scope as soon as it is held by a lessee.","es":""},"erroneous":true,"correction":{"fr":"","en":"A right-of-use asset held as an investment falls within the definition of investment property even for a lessee (IAS 40).","es":""}},{"id":"c","text":{"fr":"","en":"Biological assets are within the scope of IAS 40 if they stand on leased land.","es":""},"erroneous":true,"correction":{"fr":"","en":"Biological assets are excluded from scope (IAS 40), wherever they are.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000007","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"DEFINITION_PURPOSE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-definition"},"references":["IAS 40 §5","IAS 40 §8"],"exercise":{"prompt":{"fr":"","en":"Land held in the hope of a price increase can be investment property.","es":""},"explanation":{"fr":"","en":"Land held for capital appreciation meets the definition (IAS 40, para. 5) (IAS 40, para. 8).","es":""},"common_error":{"fr":"","en":"Believing only buildings can be investments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000008","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"ROLE_NOT_APPEARANCE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"understand"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"A retailer owns a building whose floors it fully uses for its head office. Which statement is correct?","es":""},"explanation":{"fr":"","en":"Use for the entity's administration makes it owner-occupied (IAS 40, para. 5).","es":""},"common_error":{"fr":"","en":"Relying on location or potential value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The property is an investment because it is in the city centre","es":""},"correct":false,"feedback":{"fr":"","en":"Location does not decide: the holding purpose counts (IAS 40, para. 5).","es":""}},{"id":"B","text":{"fr":"","en":"The property is an investment because its value may rise","es":""},"correct":false,"feedback":{"fr":"","en":"A possible rise in value is not enough: the property must be held for that purpose (IAS 40, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"The property is owner-occupied, because it serves administration","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000009","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_INCLUDED","IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"CLASSIFY_PROPERTIES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §8","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Classify each property of the company Brasseval.","es":""},"explanation":{"fr":"","en":"Rentals and appreciation characterise investment property (IAS 40, para. 8); inventory and own use are excluded (IAS 40).","es":""},"common_error":{"fr":"","en":"Classing as an investment any building that is let or could appreciate.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"no","text":{"fr":"","en":"Not investment property","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Building let to tenants","es":""},"category":"ip"},{"id":"b","text":{"fr":"","en":"Land kept for capital appreciation","es":""},"category":"ip"},{"id":"c","text":{"fr":"","en":"Vacant building intended to be let","es":""},"category":"ip"},{"id":"d","text":{"fr":"","en":"Buildings constructed to be sold to customers","es":""},"category":"no"},{"id":"e","text":{"fr":"","en":"Workshop used for the company's production","es":""},"category":"no"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000010","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"DEFINED_TERMS_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-terms"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Match each defined term to its description.","es":""},"explanation":{"fr":"","en":"These terms are defined by the standard (IAS 40, para. 5).","es":""},"common_error":{"fr":"","en":"Confusing carrying amount (balance-sheet amount) with cost (entry amount).","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Carrying amount","es":""}},{"id":"l2","text":{"fr":"","en":"Cost","es":""}},{"id":"l3","text":{"fr":"","en":"Owner-occupied property","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Amount at which the asset appears in the statement of financial position","es":""}},{"id":"r2","text":{"fr":"","en":"Amount paid, or fair value of what is given, to acquire the asset","es":""}},{"id":"r3","text":{"fr":"","en":"Property held to produce, supply or administer","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000011","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"EXCLUDED_EXAMPLES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §8","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Which properties are not investment property? Several answers.","es":""},"explanation":{"fr":"","en":"Inventory and owner-occupied property are excluded (IAS 40); a property leased out under a finance lease is no longer held by the lessor, which recognises a receivable (IAS 40, para. 9; IFRS 16).","es":""},"common_error":{"fr":"","en":"Thinking any lease rules out investment property.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A building let to tenants under an operating lease","es":""},"correct":false,"feedback":{"fr":"","en":"A building let for rentals is a typical example of investment property (IAS 40, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"Property inventory held for ordinary sale","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Owner-occupied property","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A property leased out to another entity under a finance lease (at the lessor)","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000012","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY","IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"DECISION_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"how"},"references":["IAS 40 §5","IAS 40 §7","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Put the three questions for classifying a property in order.","es":""},"explanation":{"fr":"","en":"Purpose comes first, then independence of flows, then exclusions (IAS 40, para. 5) (IAS 40, para. 7).","es":""},"common_error":{"fr":"","en":"Starting from the look of the property instead of its purpose.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Why does the entity hold the property?","es":""}},{"id":"s2","text":{"fr":"","en":"Does the property generate its flows largely independently of other assets?","es":""}},{"id":"s3","text":{"fr":"","en":"Does an exclusion (inventory, under construction for sale, owner-occupied) apply?","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000013","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"FINANCE_LEASE_LESSOR","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"pitfalls"},"references":["IAS 40 §8","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about excluded items.","es":""},"explanation":{"fr":"","en":"The exclusions cover inventory (including property under construction) and owner-occupied property (IAS 40); a property leased out under a finance lease also leaves the category at the lessor, which recognises a receivable (IAS 40, para. 9; IFRS 16).","es":""},"common_error":{"fr":"","en":"Reasoning on the vacancy of the property rather than its purpose.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"A property leased out under a finance lease is no longer held by the lessor: it is not investment property in its books.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"A property under construction for ordinary sale is investment property.","es":""},"erroneous":true,"correction":{"fr":"","en":"A property under construction for ordinary sale is excluded from the category (inventory, IAS 40).","es":""}},{"id":"c","text":{"fr":"","en":"A vacant building intended for letting is inventory.","es":""},"erroneous":true,"correction":{"fr":"","en":"A vacant building intended to be let is investment property (IAS 40, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000014","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY","IAS40.DEFINITION.EXAMPLES_INCLUDED"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"PURPOSE_EVIDENCE_CASE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"judgment"},"references":["IAS 40 §5","IAS 40 §8","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Classify two properties of the company Orlane.","es":""},"explanation":{"fr":"","en":"The holding purpose decides, supported by facts, with no numerical threshold.","es":""},"common_error":{"fr":"","en":"Requiring a threshold or rent already collected before classing as an investment.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Orlane holds two properties. Property P is a building all of whose floors are let to third parties under signed leases. Property Q is a vacant building, offered on the rental market through an agency mandate, with no use by Orlane.","es":""},"parts":[{"prompt":{"fr":"","en":"How should property P be classified?","es":""},"explanation":{"fr":"","en":"Held for rentals: investment property (IAS 40, para. 5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Investment property","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Owner-occupied property","es":""},"correct":false,"feedback":{"fr":"","en":"No own use: all floors are let (IAS 40, para. 5).","es":""}},{"id":"C","text":{"fr":"","en":"Inventory","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing indicates a sale in the ordinary course (IAS 40).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Can the vacant property Q be investment property?","es":""},"explanation":{"fr":"","en":"The letting purpose, documented by the mandate, is enough to class it as an investment (IAS 40, para. 8).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because it is intended to be let, which the file documents","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No, because it earns no rent today","es":""},"correct":false,"feedback":{"fr":"","en":"A vacant building intended to be let is cited as an example of investment property (IAS 40, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"No, because a minimum two-year vacancy threshold is required","es":""},"correct":false,"feedback":{"fr":"","en":"No such numerical threshold is set: it is a fact-based judgement.","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000015","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.TERMS","IAS40.DEFINITION.INVESTMENT_PROPERTY"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FAIR_VALUE_TERM_FILL","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS40.000002","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-terms"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Carrying amount and cost are two distinct defined terms (IAS 40, para. 5).","es":""},"common_error":{"fr":"","en":"Using carrying amount for the purchase price.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The amount at which an asset appears in the statement of financial position is the {{b1}}. The amount paid to acquire it is the {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"carrying amount","es":""}},{"id":"b","text":{"fr":"","en":"fair value","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"cost","es":""}},{"id":"b","text":{"fr":"","en":"depreciable amount","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000016","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.DUAL_USE_SPLIT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"SEPARATE_PARTS_RULE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-dual"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"A building has a ground-floor shop that could be sold separately, and offices occupied by the owner. How should it be accounted for?","es":""},"explanation":{"fr":"","en":"Separable parts: separate accounting (IAS 40, para. 10).","es":""},"common_error":{"fr":"","en":"Applying the insignificance test when the parts are separable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separately: the let shop as investment, the offices as owner-occupied","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Entirely as owner-occupied","es":""},"correct":false,"feedback":{"fr":"","en":"Separable parts are accounted for separately (IAS 40, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"Entirely as investment","es":""},"correct":false,"feedback":{"fr":"","en":"The owner-occupied part is not an investment when it is separable (IAS 40, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000017","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.DUAL_USE_SPLIT"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"SPLIT_COST_BY_AREA","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"numeric-split"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"A €6,000,000 building has 5,000 m²: 4,000 m² let to third parties and 1,000 m² occupied by the owner. The parts are separable (case data) and the case allocates the cost by floor area (teaching assumption). Calculate the share of each category.","es":""},"explanation":{"fr":"","en":"6,000,000 × 4,000 / 5,000 = 4,800,000; 6,000,000 × 1,000 / 5,000 = 1,200,000; total 6,000,000. The area key is a case assumption (IAS 40, para. 10).","es":""},"common_error":{"fr":"","en":"Presenting the area key as imposed by the standard.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total cost","es":""},"value":"6000000","unit":"EUR"},{"label":{"fr":"","en":"Let area","es":""},"value":"4000","unit":"m²"},{"label":{"fr":"","en":"Occupied area","es":""},"value":"1000","unit":"m²"}],"steps":[{"id":"ip","label":{"fr":"","en":"Amount as investment property","es":""},"answer":4800000,"tolerance":0,"unit":"EUR"},{"id":"oo","label":{"fr":"","en":"Amount as owner-occupied property","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ip","meaning":{"fr":"","en":"Amount as investment property","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost","es":""},"value":6000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Let area","es":""},"value":4000,"unit":"m²"},{"symbol":"c","meaning":{"fr":"","en":"building has 5,000 m²","es":""},"value":5000}],"result":4800000,"unit":"EUR"},{"step":"oo","meaning":{"fr":"","en":"Amount as owner-occupied property","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total cost","es":""},"value":6000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Occupied area","es":""},"value":1000,"unit":"m²"},{"symbol":"c","meaning":{"fr":"","en":"building has 5,000 m²","es":""},"value":5000}],"result":1200000,"unit":"EUR"}],"references":["REF.IAS40.10"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000018","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.DUAL_USE_SPLIT","IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"THREE_DUAL_USE_CASES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-dual"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"Classify each situation by its treatment. Conclusions on significance are case data.","es":""},"explanation":{"fr":"","en":"Separable: two treatments; inseparable: insignificance decides (IAS 40, para. 10).","es":""},"common_error":{"fr":"","en":"Applying the insignificance test even to separable parts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"sep","text":{"fr":"","en":"Separate accounting","es":""}},{"id":"ip","text":{"fr":"","en":"Whole property as investment","es":""}},{"id":"oo","text":{"fr":"","en":"Whole property as owner-occupied","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Parts that could be sold separately; three floors let, one occupied","es":""},"category":"sep"},{"id":"b","text":{"fr":"","en":"Inseparable parts; own occupation judged insignificant","es":""},"category":"ip"},{"id":"c","text":{"fr":"","en":"Inseparable parts; own occupation judged significant","es":""},"category":"oo"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000019","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"NO_FIXED_THRESHOLD","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-insignificant"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the insignificant occupied part.","es":""},"explanation":{"fr":"","en":"The threshold is not fixed by the standard: it is a matter of judgement (IAS 40, para. 10).","es":""},"common_error":{"fr":"","en":"Importing a practice percentage as a rule of the standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"The standard sets 10% of floor space as the threshold for the insignificant occupied part.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard sets no such threshold: insignificance is a fact-based judgement (IAS 40, para. 10).","es":""}},{"id":"b","text":{"fr":"","en":"The insignificance test applies when the parts cannot be sold separately or leased out separately under a finance lease.","es":""},"erroneous":false},{"id":"c","text":{"fr":"","en":"The judgement on insignificance need not be documented.","es":""},"erroneous":true,"correction":{"fr":"","en":"A significant professional judgement is documented with the supporting facts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000020","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION","IAS40.CLASSIFICATION.DUAL_USE_SPLIT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"INSIGNIFICANT_CONSEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-insignificant"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"Inseparable parts, owner-occupied part judged significant (case data). What is the consequence?","es":""},"explanation":{"fr":"","en":"Without separability, a significant occupied part rules out investment status (IAS 40, para. 10).","es":""},"common_error":{"fr":"","en":"Concluding by default to a partial investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The property is investment for the let part","es":""},"correct":false,"feedback":{"fr":"","en":"This split presupposes separable parts, which is not the case (IAS 40, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"The property remains an investment because it is partly let","es":""},"correct":false,"feedback":{"fr":"","en":"Partial letting is not enough: the occupied part must be insignificant (IAS 40, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The property is not investment property","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000021","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.ANCILLARY_SERVICES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"SECURITY_SERVICES_OFFICE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-ancillary"},"references":["IAS 40 §11","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"A company lets its offices to businesses and provides guarding for the building. The service is relatively insignificant in the arrangement (case data). The property is:","es":""},"explanation":{"fr":"","en":"Relatively insignificant services leave the property as an investment (IAS 40, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Owner-occupied property","es":""},"correct":false,"feedback":{"fr":"","en":"The service does not make the property useful for the company's own activity (IAS 40, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"Investment property","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Inventory","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing indicates holding for ordinary sale (IAS 40).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS40.000022","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.ANCILLARY_SERVICES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"HOSPITALITY","tested_point":"ANCILLARY_FILL","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-ancillary"},"references":["IAS 40 §11"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"The standard keeps investment classification if the services are relatively insignificant (IAS 40, para. 11).","es":""},"common_error":{"fr":"","en":"Confusing side services with the main activity.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"If the services provided to occupants are a {{b1}} component of the arrangement as a whole, the property remains {{b2}} property.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"relatively insignificant","es":""}},{"id":"b","text":{"fr":"","en":"dominant","es":""}}],"answer":"a"},{"id":"b2","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"investment","es":""}},{"id":"b","text":{"fr":"","en":"inventory","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000023","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.JUDGEMENT_SIGNIFICANCE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"HOSPITALITY","tested_point":"FACTS_FOR_SERVICES_JUDGEMENT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"judgment-services"},"references":["IAS 40 §13"],"exercise":{"prompt":{"fr":"","en":"An owner entrusts its hotel to a manager under a contract. Which facts help judge whether it is a passive investor or an operator? Several answers.","es":""},"explanation":{"fr":"","en":"The judgement rests on the facts of the arrangement, with no imposed list or threshold (IAS 40, para. 13).","es":""},"common_error":{"fr":"","en":"Looking for a numerical rule where the standard asks for a judgement.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Who bears the operating results","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"What share of revenue pays for the service rather than the space","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The colour of the hotel's facade","es":""},"correct":false,"feedback":{"fr":"","en":"An aesthetic feature says nothing about the nature of the arrangement (IAS 40, para. 13).","es":""}},{"id":"D","text":{"fr":"","en":"Who decides the hotel's prices and staffing","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000024","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.JUDGEMENT_SIGNIFICANCE","IAS40.CLASSIFICATION.ANCILLARY_SERVICES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"HOTEL_MANAGEMENT_CASE","difficulty":"EXPERT","estimated_time_s":200,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"judgment-services"},"references":["IAS 40 §13","IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Savarel Hotel: passive investor or operator?","es":""},"explanation":{"fr":"","en":"A classification judgement rests on the contract facts and is documented.","es":""},"common_error":{"fr":"","en":"Concluding from the sector (hospitality) rather than the contract facts.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Savarel SA owns a hotel entrusted to an international manager. Under the contract (case data), the manager sets prices and hires staff, the brand is the manager's, and Savarel receives a fixed fee independent of operating results.","es":""},"parts":[{"prompt":{"fr":"","en":"Which contract facts point to a passive owner?","es":""},"explanation":{"fr":"","en":"Prices, staff and a fixed fee are facts in favour of a passive investor (IAS 40, para. 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The manager sets prices and hires staff","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fee is fixed, independent of results","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The hotel is a large building","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the building does not show who operates (IAS 40, para. 13).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which classification conclusion is consistent with these facts (judgement)?","es":""},"explanation":{"fr":"","en":"The facts converge on a passive owner: an investment conclusion, to be documented (IAS 40, para. 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Investment property, because Savarel is a passive investor receiving a fee","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Owner-occupied, because the hotel provides services","es":""},"correct":false,"feedback":{"fr":"","en":"Those services are provided and borne by the manager, not by Savarel (IAS 40, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"Inventory, because the hotel may be sold one day","es":""},"correct":false,"feedback":{"fr":"","en":"A possible sale does not make inventory: holding for ordinary sale is needed (IAS 40).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000025","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.CRITERIA_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CLASSIFICATION_CRITERIA_DISCLOSED","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"criteria"},"references":["IAS 40 §14"],"exercise":{"prompt":{"fr":"","en":"An entity meets properties whose classification is difficult. What must it do?","es":""},"explanation":{"fr":"","en":"Criteria defined by the entity and disclosed (IAS 40).","es":""},"common_error":{"fr":"","en":"Replacing criteria with a default classification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Define classification criteria and disclose them","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Classify every difficult property as an investment for prudence","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for criteria, not a default classification (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"Ask the auditor to decide in its place","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is the entity's responsibility; it defines its criteria (IAS 40).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS40.000026","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INTRAGROUP_LEASE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"INTRAGROUP_PERSPECTIVES","difficulty":"EXPERT","estimated_time_s":100,"lesson_id":"LS.IAS40.000003","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"intragroup"},"references":["IAS 40 §15"],"exercise":{"prompt":{"fr":"","en":"A parent leases a building to its subsidiary, which occupies it for its business. How is it classified?","es":""},"explanation":{"fr":"","en":"The reporting entity's viewpoint determines the classification (IAS 40).","es":""},"common_error":{"fr":"","en":"Applying the same classification in individual and consolidated accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Investment in both sets of accounts, because rent is charged","es":""},"correct":false,"feedback":{"fr":"","en":"At consolidated level the group uses the property: the internal rent is eliminated (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"Owner-occupied in both sets of accounts, because the subsidiary uses it","es":""},"correct":false,"feedback":{"fr":"","en":"In the parent's individual accounts the property earns rent for it (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"Possibly investment in the parent's individual accounts, owner-occupied in the consolidated accounts","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000027","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"TWO_CONDITIONS_TF","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-criteria"},"references":["IAS 40 §16"],"exercise":{"prompt":{"fr":"","en":"To be recognised as an asset, an investment property must meet a single condition: a reliably measurable cost.","es":""},"explanation":{"fr":"","en":"Two conditions are required: probable future benefits and a reliably measurable cost (IAS 40).","es":""},"common_error":{"fr":"","en":"Retaining only the measurement condition.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000028","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"CAPITALISE_OR_EXPENSE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-subsequent"},"references":["IAS 40 §18","IAS 40 §19","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"Among these expenditures on an investment property, which is taken to expense?","es":""},"explanation":{"fr":"","en":"Day-to-day servicing is an expense (IAS 40, para. 18).","es":""},"common_error":{"fr":"","en":"Capitalising every regular expenditure on the property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost of a new roof replacing the old one (criteria met)","es":""},"correct":false,"feedback":{"fr":"","en":"Replacing a part is recognised in the asset if the criteria are met (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"Legal fees on acquiring the property","es":""},"correct":false,"feedback":{"fr":"","en":"Directly attributable expenditure on acquisition is part of the cost (IAS 40, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"Yearly maintenance painting of common areas","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000029","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"CLASSIFY_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-subsequent"},"references":["IAS 40 §18","IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Classify each expenditure: asset or expense (the recognition criteria are met where relevant).","es":""},"explanation":{"fr":"","en":"Day-to-day servicing: expense (IAS 40, para. 18); replacement of a part: asset, old part removed (IAS 40).","es":""},"common_error":{"fr":"","en":"Treating a simple repair as a replacement.","es":""},"format":"CLASSIFICATION","categories":[{"id":"as","text":{"fr":"","en":"Recognised in the asset","es":""}},{"id":"ex","text":{"fr":"","en":"Taken to expense","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Replacement of windows, old windows removed","es":""},"category":"as"},{"id":"b","text":{"fr":"","en":"Replacement of bulbs and seals","es":""},"category":"ex"},{"id":"c","text":{"fr":"","en":"Labour for monthly cleaning","es":""},"category":"ex"},{"id":"d","text":{"fr":"","en":"New lift installed in place of the old one","es":""},"category":"as"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000030","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_REPLACEMENT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"entry"},"references":["IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Cost model. A company replaces a boiler: the new one costs €90,000 (paid in cash, criteria met); the old one has a carrying amount of €12,000, which is derecognised. Record the replacement entry (one combined entry).","es":""},"explanation":{"fr":"","en":"Debit property 90,000 (new part); debit expense 12,000 and credit property 12,000 (old part); credit cash 90,000. Total debits 102,000 = total credits 102,000 (IAS 40).","es":""},"common_error":{"fr":"","en":"Forgetting to remove the value of the old boiler.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"inv","text":{"fr":"","en":"Investment property","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"exp","text":{"fr":"","en":"Derecognition expense","es":""}}],"lines":[{"id":"l1","account":"inv","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"exp","side":"DEBIT","amount":12000},{"id":"l3","account":"inv","side":"CREDIT","amount":12000},{"id":"l4","account":"cash","side":"CREDIT","amount":90000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000031","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"CARRYING_AFTER_REPLACEMENT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"numeric-replace"},"references":["IAS 40 §18","IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Cost model. Carrying amount of a property: €2,400,000. Replacement of a facade: new part €150,000 (criteria met), carrying amount of the old facade €20,000; day-to-day servicing for the year €6,000. Calculate the carrying amount after replacement and the servicing expense.","es":""},"explanation":{"fr":"","en":"2,400,000 + 150,000 − 20,000 = 2,530,000; the servicing of 6,000 goes to profit or loss (IAS 40, para. 18).","es":""},"common_error":{"fr":"","en":"Adding the servicing to the carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"New part","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Old part","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Day-to-day servicing","es":""},"value":"6000","unit":"EUR"}],"steps":[{"id":"cv","label":{"fr":"","en":"Carrying amount after replacement","es":""},"answer":2530000,"tolerance":0,"unit":"EUR"},{"id":"ex","label":{"fr":"","en":"Servicing expense","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"cv","meaning":{"fr":"","en":"Carrying amount after replacement","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"New part","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Old part","es":""},"value":20000,"unit":"EUR"}],"result":2530000,"unit":"EUR"}],"references":["REF.IAS40.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000032","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.CRITERIA","IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"RECOGNITION_ERRORS","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"pitfalls"},"references":["IAS 40","IAS 40 §18","IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about investment property costs.","es":""},"explanation":{"fr":"","en":"Criteria for each cost; servicing as expense; old part removed (IAS 40, para. 18).","es":""},"common_error":{"fr":"","en":"Reasoning on the amount rather than on the nature of the expenditure.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"The recognition criteria apply to initial and subsequent costs.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"When a part is replaced, the old part stays in the asset until the property is sold.","es":""},"erroneous":true,"correction":{"fr":"","en":"The carrying amount of the replaced part is derecognised at replacement (IAS 40).","es":""}},{"id":"c","text":{"fr":"","en":"A high servicing expenditure becomes an asset because of its amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"The amount does not change the nature of day-to-day servicing, which is an expense (IAS 40, para. 18).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000033","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"RENOVATION_INVOICE_CASE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS40.000004","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"judgment"},"references":["IAS 40 §18","IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Renovation of an investment property.","es":""},"explanation":{"fr":"","en":"A mixed invoice is split: replacement as an asset net of the old part, servicing as expense.","es":""},"common_error":{"fr":"","en":"Capitalising the whole €80,000 invoice.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Lorvane (cost model) receives a renovation invoice of €80,000 for a let property. It includes: replacement of the heating system €62,000 (old equipment with a carrying amount of €9,000 removed, criteria met); maintenance painting of common areas €18,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the net effect on the property's carrying amount.","es":""},"explanation":{"fr":"","en":"Net effect = cost of the new heating added to carrying amount − carrying amount of the old equipment derecognised = 62,000 − 9,000 = 53,000 (IAS 40).","es":""},"common_error":{"fr":"","en":"Adding the new heating without derecognising the old equipment, or the reverse: the replacement cost is added and the carrying amount of the replaced part removed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"New heating","es":""},"value":"62000","unit":"EUR"},{"label":{"fr":"","en":"Old equipment","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net effect on carrying amount","es":""},"answer":53000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net effect on carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New heating","es":""},"value":62000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Old equipment","es":""},"value":9000,"unit":"EUR"}],"result":53000,"unit":"EUR","rationale":{"fr":"","en":"Net effect = cost of the new heating added to carrying amount − carrying amount of the old equipment derecognised = 62,000 − 9,000 = 53,000 (IAS 40).","es":""}}],"references":["REF.IAS40.18","REF.IAS40.19"]}},{"prompt":{"fr":"","en":"How should the maintenance painting of €18,000 be treated?","es":""},"explanation":{"fr":"","en":"Maintenance painting is day-to-day servicing: it is expensed in the year, without adding to the property's value or reducing the value of the old equipment (IAS 40, para. 18).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expense of the year","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Addition to the property's value","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing is not recognised in the asset (IAS 40, para. 18).","es":""}},{"id":"C","text":{"fr":"","en":"Reduction of the old equipment's carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The painting has no link with the old equipment replaced (IAS 40).","es":""}}],"id":"p2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000034","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"COST_INCLUDES_TRANSACTION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20"],"exercise":{"prompt":{"fr":"","en":"How is an investment property measured at initial recognition?","es":""},"explanation":{"fr":"","en":"Initial measurement at cost, including transaction costs (IAS 40, para. 20).","es":""},"common_error":{"fr":"","en":"Applying fair value from entry.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At fair value, excluding transaction costs","es":""},"correct":false,"feedback":{"fr":"","en":"On entry, cost applies (IAS 40, para. 20).","es":""}},{"id":"B","text":{"fr":"","en":"At cost, including transaction costs","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the expected selling price","es":""},"correct":false,"feedback":{"fr":"","en":"The future selling price is not the initial measurement basis (IAS 40, para. 20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000035","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION","IAS40.INITIAL.TRANSACTION_COSTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"PURCHASE_COST_CALC","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"numeric-cost"},"references":["IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"A company buys an investment property: price €1,800,000, legal fees €15,000, transfer duties €72,000. It pays everything in cash. Calculate the entry cost.","es":""},"explanation":{"fr":"","en":"1,800,000 + 15,000 + 72,000 = 1,887,000 (IAS 40, para. 21).","es":""},"common_error":{"fr":"","en":"Retaining only the purchase price.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Purchase price","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Legal fees","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Transfer duties","es":""},"value":"72000","unit":"EUR"}],"steps":[{"id":"cost","label":{"fr":"","en":"Entry cost","es":""},"answer":1887000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"cost","meaning":{"fr":"","en":"Entry cost","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Legal fees","es":""},"value":15000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transfer duties","es":""},"value":72000,"unit":"EUR"}],"result":1887000,"unit":"EUR"}],"rationale":{"fr":"","en":"1,800,000 + 15,000 + 72,000 = 1,887,000 (IAS 40, para. 21).","es":""},"references":["REF.IAS40.21"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000036","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION","IAS40.INITIAL.TRANSACTION_COSTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_PURCHASE_PARTLY_FINANCED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"entry"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"A company acquires an investment property at a cost of €1,887,000 (price and directly attributable expenditure). It pays €387,000 in cash and finances €1,500,000 with a bank loan. Record the acquisition entry.","es":""},"explanation":{"fr":"","en":"Debit property 1,887,000; credit cash 387,000 and loan 1,500,000; 387,000 + 1,500,000 = 1,887,000 (IAS 40, para. 20) (IAS 40, para. 21).","es":""},"common_error":{"fr":"","en":"Recognising in the asset only the part paid in cash.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"loan","text":{"fr":"","en":"Bank loan","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":1887000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":387000},{"id":"l3","account":"loan","side":"CREDIT","amount":1500000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000037","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCLUDED_COSTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"INCLUDED_OR_EXCLUDED_COSTS","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-excluded"},"references":["IAS 40 §21","IAS 40 §23"],"exercise":{"prompt":{"fr":"","en":"Classify each cost: included in the entry cost or excluded.","es":""},"explanation":{"fr":"","en":"Price and attributable expenditure are included (IAS 40, para. 21); start-up, initial losses and wastage are excluded (IAS 40).","es":""},"common_error":{"fr":"","en":"Including in the cost everything linked to the project.","es":""},"format":"CLASSIFICATION","categories":[{"id":"in","text":{"fr":"","en":"Included in the cost","es":""}},{"id":"ex","text":{"fr":"","en":"Excluded (expense)","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Purchase price of the building","es":""},"category":"in"},{"id":"b","text":{"fr":"","en":"Legal fees of the acquisition","es":""},"category":"in"},{"id":"c","text":{"fr":"","en":"Start-up costs of the letting activity","es":""},"category":"ex"},{"id":"d","text":{"fr":"","en":"Operating loss before the planned occupancy level","es":""},"category":"ex"},{"id":"e","text":{"fr":"","en":"Abnormal wastage of materials during works","es":""},"category":"ex"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000038","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCLUDED_COSTS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EXCLUDED_COSTS_MC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-excluded"},"references":["IAS 40 §21","IAS 40 §23"],"exercise":{"prompt":{"fr":"","en":"Which costs are excluded from the cost of an investment property? Several answers.","es":""},"explanation":{"fr":"","en":"Three categories of cost are excluded (IAS 40).","es":""},"common_error":{"fr":"","en":"Excluding transfer duties because they are a tax.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Abnormal wastage of resources","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Transfer duties on the acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"They are directly attributable to the acquisition and included in the cost (IAS 40, para. 21).","es":""}},{"id":"C","text":{"fr":"","en":"Start-up costs","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Initial operating losses before the planned occupancy level","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS40.000039","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.DEFERRED_PAYMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"DEFERRED_PAYMENT_INTEREST","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-deferred"},"references":["IAS 40 §24"],"exercise":{"prompt":{"fr":"","en":"An investment property is bought for €1,102,500 payable in two years; its cash price is €1,000,000 and the implicit rate is 5% (case data). Calculate the entry cost, first-year interest and total interest.","es":""},"explanation":{"fr":"","en":"Cost = cash price 1,000,000; year 1 interest = 1,000,000 × 5% = 50,000; total interest = 1,102,500 − 1,000,000 = 102,500 (IAS 40).","es":""},"common_error":{"fr":"","en":"Using 1,102,500 as the cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount payable in 2 years","es":""},"value":"1102500","unit":"EUR"},{"label":{"fr":"","en":"Cash price","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"5","unit":"%"}],"steps":[{"id":"cost","label":{"fr":"","en":"Entry cost","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"i1","label":{"fr":"","en":"Year 1 interest","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"it","label":{"fr":"","en":"Total interest","es":""},"answer":102500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"it","meaning":{"fr":"","en":"Total interest","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable in 2 years","es":""},"value":1102500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cash price","es":""},"value":1000000,"unit":"EUR"}],"result":102500,"unit":"EUR"}],"references":["REF.IAS40.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000040","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCHANGE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"EXCHANGE_COST_SUBSTANCE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-exchange"},"references":["IAS 40 §27","IAS 16 §24"],"exercise":{"prompt":{"fr":"","en":"A company exchanges land (carrying amount €800,000, fair value €1,000,000) for a property. The exchange has commercial substance (case data) and fair value is reliably measurable. What is the cost of the property?","es":""},"explanation":{"fr":"","en":"With commercial substance, cost is the fair value of the asset given up (IAS 40, para. 27) (IAS 16).","es":""},"common_error":{"fr":"","en":"Systematically carrying over the carrying amount of the asset given up.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€800,000, the carrying amount of the asset given up","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amount applies only without commercial substance or reliable fair value (IAS 16).","es":""}},{"id":"B","text":{"fr":"","en":"€1,000,000, the fair value of the asset given up","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€200,000, the unrealised gain on the land","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is not the cost of the new asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000041","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.LEASED_PROPERTY"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"ROU_INITIAL_COST_CALC","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-leased"},"references":["IAS 40 §5","IFRS 16 §23","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"A lessee holds an investment property through a right-of-use asset. 3-year lease, rent of €50,000 paid at the end of each year, discount rate of 5%, initial direct costs of €4,000 (case data). Calculate the initial lease liability (rounded to the euro) and the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"50,000 × (1/1.05 + 1/1.05² + 1/1.05³) = 50,000 × 2.723248 ≈ 136,162; cost = 136,162 + 4,000 = 140,162 (IAS 40, para. 5) (IFRS 16, para. 23) (IFRS 16, para. 24).","es":""},"common_error":{"fr":"","en":"Forgetting the initial direct costs or not discounting the rents.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual rent","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"%"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"liab","label":{"fr":"","en":"Initial lease liability","es":""},"answer":136162,"tolerance":1,"unit":"EUR"},{"id":"rou","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":140162,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"rou","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":136162,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":4000,"unit":"EUR"}],"result":140162,"unit":"EUR"}],"references":["REF.IAS40.5","REF.IFRS16.23","REF.IFRS16.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000042","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.LEASED_PROPERTY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"ROU_INITIAL_ENTRY","difficulty":"EXPERT","estimated_time_s":150,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-leased"},"references":["IAS 40 §5","IFRS 16 §22","IFRS 16 §23"],"exercise":{"prompt":{"fr":"","en":"At the commencement of the previous item's lease, the lessee recognises the right-of-use asset held as an investment property, the lease liability of €136,162 and pays €4,000 of initial direct costs. Record the commencement entry.","es":""},"explanation":{"fr":"","en":"Debit right-of-use asset 140,162; credit lease liability 136,162 and cash 4,000; 136,162 + 4,000 = 140,162 (IAS 40, para. 5) (IFRS 16, para. 22) (IFRS 16, para. 23).","es":""},"common_error":{"fr":"","en":"Recognising the right-of-use asset at the lease liability alone.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"rou","text":{"fr":"","en":"Right-of-use asset (investment property)","es":""}},{"id":"liab","text":{"fr":"","en":"Lease liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"rou","side":"DEBIT","amount":140162,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":136162},{"id":"l3","account":"cash","side":"CREDIT","amount":4000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000043","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION","IAS40.INITIAL.EXCLUDED_COSTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"ACQUISITION_COST_BUILDUP","difficulty":"ADVANCED","estimated_time_s":200,"lesson_id":"LS.IAS40.000005","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"judgment"},"references":["IAS 40 §20","IAS 40 §21","IAS 40 §23"],"exercise":{"prompt":{"fr":"","en":"Building the entry cost of the Talvane property.","es":""},"explanation":{"fr":"","en":"The entry cost adds the price and attributable expenditure; initial losses are an expense.","es":""},"common_error":{"fr":"","en":"Capitalising initial losses to flatter profit.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Talvane buys a property to let. Price €3,000,000; legal fees €25,000; transfer duties €120,000; first-year operating losses, before the planned occupancy level, €40,000. Everything is paid in cash.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the entry cost.","es":""},"explanation":{"fr":"","en":"3,000,000 + 25,000 + 120,000 = 3,145,000; the 40,000 losses are excluded (IAS 40, para. 21).","es":""},"common_error":{"fr":"","en":"Including start-up losses in initial cost: only the price and directly attributable costs, such as fees and duties, are included.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Fees","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Duties","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"cost","label":{"fr":"","en":"Entry cost","es":""},"answer":3145000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"cost","meaning":{"fr":"","en":"Entry cost","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fees","es":""},"value":25000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Duties","es":""},"value":120000,"unit":"EUR"}],"result":3145000,"unit":"EUR"}],"references":["REF.IAS40.21"]}},{"prompt":{"fr":"","en":"How should the operating losses of €40,000 be treated?","es":""},"explanation":{"fr":"","en":"The €40,000 operating losses are not part of the property's initial cost: they are expensed in the year, without being spread (IAS 40).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expense of the year, outside the entry cost","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Added to the entry cost","es":""},"correct":false,"feedback":{"fr":"","en":"Initial operating losses are excluded from the cost (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"Spread over the life of the property","es":""},"correct":false,"feedback":{"fr":"","en":"An excluded cost is not spread through a fictitious asset (IAS 40).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Record the entry of the property (all in cash).","es":""},"explanation":{"fr":"","en":"Debit investment property 3,145,000; credit cash 3,145,000 (IAS 40, para. 20).","es":""},"common_error":{"fr":"","en":"Adding operating losses to the entry amount or expensing the property: it is recognised at cost, including directly attributable expenditure.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":3145000,"given":["account"]},{"id":"l2","account":"cash","side":"CREDIT","amount":3145000,"given":["account"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000044","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"MODEL_IS_A_CHOICE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-choice"},"references":["IAS 40 §30"],"exercise":{"prompt":{"fr":"","en":"An entity may measure its investment property under the fair value model or the cost model.","es":""},"explanation":{"fr":"","en":"Both models are permitted as an accounting policy (IAS 40, para. 30).","es":""},"common_error":{"fr":"","en":"Thinking only one model exists.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000045","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"MODEL_FEATURES_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"compare"},"references":["IAS 40 §33","IAS 40 §35","IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"Match each feature to the corresponding model.","es":""},"explanation":{"fr":"","en":"Cost model: IAS 16 (IAS 40, para. 56); fair value model: change in profit or loss, no depreciation (IAS 40, para. 33) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Swapping the two models.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Depreciation and impairment under IAS 16","es":""}},{"id":"l2","text":{"fr":"","en":"Value changes in profit or loss, no depreciation","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Cost model","es":""}},{"id":"r2","text":{"fr":"","en":"Fair value model","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000046","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"SAME_PROPERTY_TWO_MODELS","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"numeric-compare"},"references":["IAS 40 §33","IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"A property bought for €3,000,000 (land €800,000, building €2,200,000) has a building depreciated over 40 years (straight-line, nil residual value); its fair value at year end is €3,180,000 (case data). Calculate the cost model depreciation, the carrying amount under each model and the gap.","es":""},"explanation":{"fr":"","en":"2,200,000 / 40 = 55,000; 3,000,000 − 55,000 = 2,945,000; fair value 3,180,000; gap 3,180,000 − 2,945,000 = 235,000 (IAS 40, para. 33) (IAS 40, para. 56).","es":""},"common_error":{"fr":"","en":"Depreciating the land too.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Building","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"40","unit":"YEARS"},{"label":{"fr":"","en":"Closing fair value","es":""},"value":"3180000","unit":"EUR"}],"steps":[{"id":"dep","label":{"fr":"","en":"Depreciation (cost model)","es":""},"answer":55000,"tolerance":0,"unit":"EUR"},{"id":"cm","label":{"fr":"","en":"Carrying amount, cost model","es":""},"answer":2945000,"tolerance":0,"unit":"EUR"},{"id":"fv","label":{"fr":"","en":"Carrying amount, fair value model","es":""},"answer":3180000,"tolerance":0,"unit":"EUR"},{"id":"gap","label":{"fr":"","en":"Gap between the two models","es":""},"answer":235000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"dep","meaning":{"fr":"","en":"Depreciation (cost model)","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Building","es":""},"value":2200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":40,"unit":"YEARS"}],"result":55000,"unit":"EUR"},{"step":"gap","meaning":{"fr":"","en":"Gap between the two models","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value","es":""},"value":3180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount, cost model","es":""},"value":2945000,"unit":"EUR"}],"result":235000,"unit":"EUR"}],"references":["REF.IAS40.33","REF.IAS40.56"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000047","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE"],"dimension":"APPLICATION","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"MODEL_SCOPE_ALL_PROPERTY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-choice"},"references":["IAS 40 §30","IAS 40 §32A"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the model choice.","es":""},"explanation":{"fr":"","en":"A single model for all property, save the category option (IAS 40, para. 30).","es":""},"common_error":{"fr":"","en":"Choosing the model property by property.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"The model adopted applies to all the entity's investment property.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"The standard imposes fair value on listed entities.","es":""},"erroneous":true,"correction":{"fr":"","en":"The choice between fair value and cost is open; no such obligation is set (IAS 40, para. 30).","es":""}},{"id":"c","text":{"fr":"","en":"An entity may measure one property at fair value and another at cost at its preference.","es":""},"erroneous":true,"correction":{"fr":"","en":"The choice applies to all property, save a specified exception (IAS 40, para. 30).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000048","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.CHANGE_IN_POLICY"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CHANGE_MODEL_CONDITION","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-change"},"references":["IAS 40 §31"],"exercise":{"prompt":{"fr":"","en":"Under what condition may an entity change the measurement model of its investment property?","es":""},"explanation":{"fr":"","en":"A change of policy must lead to a more relevant presentation (IAS 40).","es":""},"common_error":{"fr":"","en":"Believing the model change is free.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At any time, on management's mere decision","es":""},"correct":false,"feedback":{"fr":"","en":"The change is not free: it must improve relevance (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"If the change gives a more relevant presentation of the financial statements","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only when a property is sold","es":""},"correct":false,"feedback":{"fr":"","en":"No such condition is set (IAS 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000049","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.CHANGE_IN_POLICY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CHANGE_POLICY_IAS8","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-change"},"references":["IAS 40 §31","IAS 8 §22"],"exercise":{"prompt":{"fr":"","en":"An entity moves from the cost model to the fair value model, a permitted change in accounting policy. How does it apply it in principle?","es":""},"explanation":{"fr":"","en":"Change of policy: retrospective application in principle (IAS 40) (IAS 8, para. 22).","es":""},"common_error":{"fr":"","en":"Treating the change of policy as a change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Prospectively, without restating the opening balance","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 8 principle is retrospective application (IAS 8, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"Retrospectively, adjusting the opening balance of the equity components concerned","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Entirely in profit or loss of the current year","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment concerns opening equity, not current profit (IAS 8, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000050","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.LINKED_LIABILITIES_POOLS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"CATEGORY_OPTION_LINKED","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-linked"},"references":["IAS 40 §32A","IAS 40 §30"],"exercise":{"prompt":{"fr":"","en":"An insurer holds investment property backing contracts whose return is linked to its fair value, and other property held on its own account. What does the standard allow?","es":""},"explanation":{"fr":"","en":"The standard provides a category option for liabilities linked to fair value (IAS 40).","es":""},"common_error":{"fr":"","en":"Applying the exception to all the insurer's property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A different model for each property, at the insurer's preference","es":""},"correct":false,"feedback":{"fr":"","en":"The option is open by category, not property by property (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"No exception: a single model for all property","es":""},"correct":false,"feedback":{"fr":"","en":"A category exception exists for linked liabilities (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"A separate model choice for the category of property backing linked liabilities","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000051","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE","IAS40.POLICY.LINKED_LIABILITIES_POOLS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"MODEL_CHOICE_JUSTIFICATION","difficulty":"EXPERT","estimated_time_s":120,"lesson_id":"LS.IAS40.000006","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"judgment"},"references":["IAS 40 §30"],"exercise":{"prompt":{"fr":"","en":"An entity documents its model choice. Which of these factors are the entity's judgement and not a condition imposed by the standard? Several answers.","es":""},"explanation":{"fr":"","en":"The reasons for the choice are the entity's judgement factors, documented (IAS 40, para. 30).","es":""},"common_error":{"fr":"","en":"Presenting a management reason as a requirement of the standard.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A standard obligation to adopt fair value for large groups","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no such obligation: it leaves the choice (IAS 40, para. 30).","es":""}},{"id":"B","text":{"fr":"","en":"Availability of reliable valuations each year","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Usefulness of the information to readers of the financial statements","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The cost of annual valuation","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000052","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"NO_DEPRECIATION_FV","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"Under the fair value model, depreciation is computed every year on the building.","es":""},"explanation":{"fr":"","en":"No depreciation is recognised: the property is measured at fair value (IAS 40, para. 33).","es":""},"common_error":{"fr":"","en":"Applying by reflex the depreciation of ordinary assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000053","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"WHERE_FV_CHANGE_GOES","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"A fair value decrease of an investment property under the fair value model is recognised:","es":""},"explanation":{"fr":"","en":"The fair value change, up or down, goes to profit or loss (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Waiting for the sale to recognise a decrease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an expense in profit or loss of the period","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"That treatment belongs to the IAS 16 revaluation, not to IAS 40 (IAS 40, para. 35).","es":""}},{"id":"C","text":{"fr":"","en":"It is not recognised until the property is sold","es":""},"correct":false,"feedback":{"fr":"","en":"The change is recognised in the period in which it arises (IAS 40, para. 35).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000054","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV","IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"THREE_YEAR_FV_CHANGES","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"numeric-fv"},"references":["IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"An investment property under the fair value model is acquired for €4,500,000. Year-end fair values (case data): year 1 €4,725,000, year 2 €4,680,000, year 3 €4,800,000. Calculate the change in each year and the cumulative profit or loss over the three years.","es":""},"explanation":{"fr":"","en":"4,725,000 − 4,500,000 = 225,000; 4,680,000 − 4,725,000 = −45,000; 4,800,000 − 4,680,000 = 120,000; total 300,000 = 4,800,000 − 4,500,000 (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Comparing each fair value with the original cost instead of the previous closing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"4500000","unit":"EUR"},{"label":{"fr":"","en":"Year 1 fair value","es":""},"value":"4725000","unit":"EUR"},{"label":{"fr":"","en":"Year 2 fair value","es":""},"value":"4680000","unit":"EUR"},{"label":{"fr":"","en":"Year 3 fair value","es":""},"value":"4800000","unit":"EUR"}],"steps":[{"id":"y1","label":{"fr":"","en":"Year 1 change","es":""},"answer":225000,"tolerance":0,"unit":"EUR"},{"id":"y2","label":{"fr":"","en":"Year 2 change","es":""},"answer":-45000,"tolerance":0,"unit":"EUR"},{"id":"y3","label":{"fr":"","en":"Year 3 change","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"tot","label":{"fr":"","en":"Cumulative result","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"y1","meaning":{"fr":"","en":"Year 1 change","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Year 1 fair value","es":""},"value":4725000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":4500000,"unit":"EUR"}],"result":225000,"unit":"EUR"},{"step":"y3","meaning":{"fr":"","en":"Year 3 change","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Year 3 fair value","es":""},"value":4800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Year 2 fair value","es":""},"value":4680000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"references":["REF.IAS40.35"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000055","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_FV_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"entry"},"references":["IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"The fair value of an investment property rises from €4,500,000 to €4,725,000 at the reporting date (fair value model). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit property 225,000; credit fair value gain in profit or loss 225,000 (4,725,000 − 4,500,000) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Crediting a revaluation surplus in OCI.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"gain","text":{"fr":"","en":"Fair value gain (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"Revaluation surplus (OCI)","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":225000,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":225000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000056","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_FV_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"entry"},"references":["IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"The fair value of an investment property falls from €4,725,000 to €4,680,000 at the next reporting date. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit fair value loss 45,000; credit property 45,000 (4,725,000 − 4,680,000) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Taking the decrease to equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"loss","text":{"fr":"","en":"Fair value loss (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":45000,"given":["account","side"]},{"id":"l2","account":"ip","side":"CREDIT","amount":45000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000057","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV","IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"CLOSING_STEPS_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"how"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"Put the closing steps under the fair value model in order.","es":""},"explanation":{"fr":"","en":"Measure, compare, then recognise in profit or loss (IFRS 13) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Booking the entry before knowing fair value.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Obtain the fair value of the property at the reporting date","es":""}},{"id":"s2","text":{"fr":"","en":"Compare that fair value with the previous carrying amount","es":""}},{"id":"s3","text":{"fr":"","en":"Recognise the difference in profit or loss","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000058","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.FAIR_VALUE_DEFINITION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"MARKET_VS_ENTITY_SPECIFIC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-fv"},"references":["IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"An owner thinks its property is worth €6,000,000 to it, thanks to an expansion project specific to its group; the market would pay €5,400,000. Which value does the fair value model use?","es":""},"explanation":{"fr":"","en":"Fair value reflects market conditions, not the entity-specific value (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using value in use or the owner's internal project.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€6,000,000, the value it expects","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is not an entity-specific value (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"€5,700,000, the average of the two","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for: a market price is measured (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"€5,400,000, the market value","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000059","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.IFRS13_LINK"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"IFRS13_LINK_FILL","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-fv"},"references":["IAS 40 §5","IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"IAS 40 refers to IFRS 13 for the determination of fair value (IAS 40, paras. 5 and 33).","es":""},"common_error":{"fr":"","en":"Looking for the valuation method in IAS 40 itself.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The fair value of an investment property is determined under {{b1}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"a","text":{"fr":"","en":"IFRS 13","es":""}},{"id":"b","text":{"fr":"","en":"IAS 2","es":""}},{"id":"c","text":{"fr":"","en":"IFRS 15","es":""}}],"answer":"a"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000060","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.LEASES_IN_VALUATION"],"dimension":"APPLICATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"LEASES_AFFECT_FV","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-leases"},"references":["IAS 40 §40","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"A let property is accounted for at fair value. Previous carrying amount €4,150,000; the expert estimates €4,000,000 as the value free of any lease and €4,300,000 as the value with existing leases (case data). Which fair value should be used and what change recognised?","es":""},"explanation":{"fr":"","en":"Existing leases are taken into account: fair value 4,300,000; change 4,300,000 − 4,150,000 = 150,000 in profit or loss (IAS 40, para. 40) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Using the value free of lease while the property is let.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Previous carrying amount","es":""},"value":"4150000","unit":"EUR"},{"label":{"fr":"","en":"Value free of lease","es":""},"value":"4000000","unit":"EUR"},{"label":{"fr":"","en":"Value with existing leases","es":""},"value":"4300000","unit":"EUR"}],"steps":[{"id":"fv","label":{"fr":"","en":"Fair value used","es":""},"answer":4300000,"tolerance":0,"unit":"EUR"},{"id":"chg","label":{"fr":"","en":"Change in profit or loss","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"chg","meaning":{"fr":"","en":"Change in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value with existing leases","es":""},"value":4300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Previous carrying amount","es":""},"value":4150000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS40.40","REF.IAS40.35"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000061","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.DOUBLE_COUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"FURNISHED_DOUBLE_COUNT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-double"},"references":["IAS 40 §50"],"exercise":{"prompt":{"fr":"","en":"An office building let furnished has a fair value of €5,000,000 that includes the furniture. The furniture accounts for €200,000 of that fair value (case data). Calculate the investment property amount to present, without recognising the furniture as a separate asset.","es":""},"explanation":{"fr":"","en":"The fair value of €5,000,000 includes the furniture; the furniture is not recognised as a separate asset, so the carrying amount of the investment property is €5,000,000 (IAS 40, para. 50(b)). The €200,000 is not added: €5,200,000 would count the furniture twice.","es":""},"common_error":{"fr":"","en":"Recognising the furniture in addition as a separate asset (5,200,000, double counting), or reducing the property to 4,800,000 although the furniture is not recognised separately: it would disappear from the assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value including furniture","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Of which furniture included in the fair value","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"ip","label":{"fr":"","en":"Investment property","es":""},"answer":5000000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000062","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.CANNOT_DETERMINE_FV"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"COST_EXCEPTION_RARE","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-cannot"},"references":["IAS 40 §53"],"exercise":{"prompt":{"fr":"","en":"In which case is an investment property of an entity using the fair value model measured under the IAS 16 cost model?","es":""},"explanation":{"fr":"","en":"The exception is rare and covers continuing unreliability from acquisition (IAS 40, para. 53).","es":""},"common_error":{"fr":"","en":"Invoking the exception to save valuation cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whenever an expert valuation is costly","es":""},"correct":false,"feedback":{"fr":"","en":"The standard presumes reliability; the cost of valuation is not the exception (IAS 40, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"In the rare case where, on acquisition, fair value is not reliably determinable on a continuing basis","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"When the market falls for several years","es":""},"correct":false,"feedback":{"fr":"","en":"A market fall is not an impossibility to measure (IAS 40, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000063","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.CANNOT_DETERMINE_FV"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_COST_EXCEPTION_DEPRECIATION","difficulty":"EXPERT","estimated_time_s":130,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-cannot"},"references":["IAS 40 §53"],"exercise":{"prompt":{"fr":"","en":"An investment property falls under the cost exception: cost €1,200,000, useful life 20 years, nil residual value (standard and case data). Record the annual depreciation entry.","es":""},"explanation":{"fr":"","en":"1,200,000 / 20 = 60,000: debit depreciation expense, credit accumulated depreciation (IAS 40, para. 53).","es":""},"common_error":{"fr":"","en":"Not depreciating a property under the cost exception.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Depreciation expense","es":""}},{"id":"acc","text":{"fr":"","en":"Accumulated depreciation (investment property)","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":60000,"given":["account","side"]},{"id":"l2","account":"acc","side":"CREDIT","amount":60000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000064","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV","IAS40.FVMODEL.GAINS_LOSSES_PL","IAS40.FVMODEL.FAIR_VALUE_DEFINITION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"TRENTAN_YEAR_END_FILE","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS40.000007","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"judgment"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"Year end of the Marlène Invest portfolio.","es":""},"explanation":{"fr":"","en":"Each property is brought to market fair value; the changes go to profit or loss.","es":""},"common_error":{"fr":"","en":"Netting the changes so as to record nothing.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: Marlène Invest (fictitious) applies the fair value model. Two properties: A (carrying amount €2,000,000, expert closing fair value €2,090,000) and B (carrying amount €1,500,000, fair value €1,410,000). The owner thinks B would be worth €1,600,000 to it thanks to a group project.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the fair value change of each property and the net effect in profit or loss.","es":""},"explanation":{"fr":"","en":"A: 2,090,000 − 2,000,000 = 90,000; B: 1,410,000 − 1,500,000 = −90,000; net 0 (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Offsetting A and B without remeasuring each one: each property is carried at its fair value; the net effect is only a sum.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Property A, carrying amount and fair value","es":""},"value":"2000000 / 2090000","unit":"EUR"},{"label":{"fr":"","en":"Property B, carrying amount and fair value","es":""},"value":"1500000 / 1410000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Change in A","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Change in B","es":""},"answer":-90000,"tolerance":0,"unit":"EUR"},{"id":"net","label":{"fr":"","en":"Net effect in profit or loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Change in A","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"expert closing fair value €2,090,000","es":""},"value":2090000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"carrying amount €2,000,000","es":""},"value":2000000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"references":["REF.IAS40.35"]}},{"prompt":{"fr":"","en":"Which value should be used for property B?","es":""},"explanation":{"fr":"","en":"Fair value is the market's (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€1,410,000, the market fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€1,600,000, the value expected by the owner","es":""},"correct":false,"feedback":{"fr":"","en":"An entity-specific value is not fair value (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"€1,500,000, the carrying amount, to avoid a loss","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value model requires updating at each reporting date (IAS 40, para. 33).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Record the closing entry for property A.","es":""},"explanation":{"fr":"","en":"Debit property 90,000; credit fair value gain 90,000 (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Crediting OCI: under the fair value model, the change in an investment property goes to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"gain","text":{"fr":"","en":"Fair value gain (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":90000,"given":["side","amount"]}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000065","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"COST_MODEL_IS_IAS16","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-cost"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"The IAS 40 cost model applies the IAS 16 cost model to the investment property.","es":""},"explanation":{"fr":"","en":"IAS 40 refers to the IAS 16 cost model (IAS 40, para. 56).","es":""},"common_error":{"fr":"","en":"Looking in IAS 40 for specific depreciation rules.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000066","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"DEPRECIATION_LAND_BUILDING","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"numeric-cost"},"references":["IAS 40 §56","IAS 16 §58"],"exercise":{"prompt":{"fr":"","en":"Cost model. An investment property costs €3,000,000: land €600,000, building €2,400,000. The building is depreciated on a straight-line basis over 30 years with no residual value (case data). Calculate the annual charge and the carrying amount after two years.","es":""},"explanation":{"fr":"","en":"2,400,000 / 30 = 80,000; 3,000,000 − 2 × 80,000 = 2,840,000; land is not depreciated (IAS 40, para. 56) (IAS 16).","es":""},"common_error":{"fr":"","en":"Depreciating the whole €3,000,000 over 30 years, land included.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Land","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Building","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"30","unit":"YEARS"}],"steps":[{"id":"dep","label":{"fr":"","en":"Annual charge","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"cv","label":{"fr":"","en":"Carrying amount after 2 years","es":""},"answer":2840000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"dep","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Building","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":30,"unit":"YEARS"}],"result":80000,"unit":"EUR"}],"references":["REF.IAS40.56"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000067","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_COST_DEPRECIATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"entry"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"Cost model. Record the annual depreciation charge of €80,000 on the building of an investment property.","es":""},"explanation":{"fr":"","en":"Debit depreciation expense 80,000; credit accumulated depreciation 80,000 (IAS 40, para. 56).","es":""},"common_error":{"fr":"","en":"Debiting an income account or crediting the property directly without tracking the accumulation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Depreciation expense","es":""}},{"id":"acc","text":{"fr":"","en":"Accumulated depreciation (investment property)","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":80000,"given":["account","side"]},{"id":"l2","account":"acc","side":"CREDIT","amount":80000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000068","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"DEPRECIATE_OR_NOT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"how"},"references":["IAS 16 §58"],"exercise":{"prompt":{"fr":"","en":"Under the cost model, which items are depreciated?","es":""},"explanation":{"fr":"","en":"The building is consumed over time; land is generally not depreciated (IAS 16).","es":""},"common_error":{"fr":"","en":"Depreciating land like the building.","es":""},"format":"CLASSIFICATION","categories":[{"id":"d","text":{"fr":"","en":"Depreciated","es":""}},{"id":"n","text":{"fr":"","en":"Not depreciated (generally)","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"The let building","es":""},"category":"d"},{"id":"b","text":{"fr":"","en":"The land, with an unlimited life","es":""},"category":"n"},{"id":"c","text":{"fr":"","en":"The replaced lift recognised in the asset","es":""},"category":"d"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000069","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"IMPAIRMENT_LOSS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"numeric-cost"},"references":["IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Cost model. At the reporting date, a property's carrying amount is €2,840,000 and its recoverable amount €2,700,000 (case data). Calculate the impairment loss.","es":""},"explanation":{"fr":"","en":"2,840,000 − 2,700,000 = 140,000, recognised in profit or loss (IAS 36, para. 59) (IAS 36, para. 60).","es":""},"common_error":{"fr":"","en":"Leaving the carrying amount unchanged because the market value is not the recoverable amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"2840000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"2700000","unit":"EUR"}],"steps":[{"id":"loss","label":{"fr":"","en":"Impairment loss","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"loss","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":2840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":2700000,"unit":"EUR"}],"result":140000,"unit":"EUR"}],"rationale":{"fr":"","en":"2,840,000 − 2,700,000 = 140,000, recognised in profit or loss (IAS 36, para. 59) (IAS 36, para. 60).","es":""},"references":["REF.IAS36.59","REF.IAS36.60"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000070","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL","IAS40.COSTMODEL.IFRS5_HELD_FOR_SALE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"COST_MODEL_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"pitfalls"},"references":["IAS 40 §56","IAS 16 §55"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the cost model.","es":""},"explanation":{"fr":"","en":"Three routes: IFRS 5 for property held for sale, IFRS 16 for a right-of-use asset held by a lessee, the IAS 16 cost model (cost, depreciation, impairment) in all other cases (IAS 40, para. 56).","es":""},"common_error":{"fr":"","en":"Confusing the two models.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"Land is generally not depreciated.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"Under the cost model, the property is remeasured through profit or loss at each reporting date.","es":""},"erroneous":true,"correction":{"fr":"","en":"That is the fair value model; the cost model has no remeasurement (IAS 40, para. 56).","es":""}},{"id":"c","text":{"fr":"","en":"Property held for sale continues to be depreciated under IAS 16.","es":""},"erroneous":true,"correction":{"fr":"","en":"It leaves the IAS 16 cost-model path and follows IFRS 5; depreciation stops (IAS 40, para. 56) (IAS 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000071","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS5_HELD_FOR_SALE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"HELD_FOR_SALE_PATH","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-held-for-sale"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"An entity using the cost model classifies an investment property as held for sale. Which standard now governs it?","es":""},"explanation":{"fr":"","en":"Property held for sale follows IFRS 5 (IAS 40, para. 56).","es":""},"common_error":{"fr":"","en":"Equating held for sale with inventory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 5, because the property leaves the cost model","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 16, which continues to apply unchanged","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 16 cost model excludes property held for sale (IAS 40, para. 56).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 2, because the property will be sold","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 2 covers inventory sold in the ordinary course, which this classification does not say (IAS 40, para. 56).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000072","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS16_ROU"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"ROU_COST_MODEL_DEPRECIATION","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-rou"},"references":["IAS 40 §56","IFRS 16 §31","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"A lessee applies the cost model to a right-of-use asset held as an investment property: cost €140,162, 3-year lease with no transfer of ownership or purchase option, straight-line depreciation over the lease term (case data). Calculate the annual charge (rounded to the euro).","es":""},"explanation":{"fr":"","en":"140,162 / 3 ≈ 46,721: depreciation runs to the end of the lease (or, if closer, of the right's useful life) (IFRS 16, para. 31) (IFRS 16, para. 32).","es":""},"common_error":{"fr":"","en":"Depreciating over the economic life of the underlying building.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"140162","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"dep","label":{"fr":"","en":"Annual charge","es":""},"answer":46721,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000073","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"USEFUL_LIFE_ESTIMATE_CHANGE","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS40.000008","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"judgment"},"references":["IAS 16 §51"],"exercise":{"prompt":{"fr":"","en":"At the end of year 3, an entity reduces from 30 to 25 years the estimated useful life of the building of an investment property (cost model). How does it treat this change?","es":""},"explanation":{"fr":"","en":"Useful life: an estimate reviewed at each reporting date, change in estimate (IAS 16).","es":""},"common_error":{"fr":"","en":"Restating past periods.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an error to correct in prior periods","es":""},"correct":false,"feedback":{"fr":"","en":"A revision of life based on new information is not an error (IAS 16).","es":""}},{"id":"B","text":{"fr":"","en":"As a change in estimate, applied prospectively under IAS 8","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a change in accounting policy, retrospective","es":""},"correct":false,"feedback":{"fr":"","en":"Useful life is an estimate, not an accounting policy (IAS 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000074","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"CHANGE_IN_USE_REQUIRED","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-change"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"A transfer to or from investment property requires a change in use supported by evidence.","es":""},"explanation":{"fr":"","en":"This is the condition set for any transfer (IAS 40, para. 57).","es":""},"common_error":{"fr":"","en":"Thinking an accounting decision is enough to transfer.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000075","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.EVIDENCE_NOT_INTENT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"INTENT_NOT_ENOUGH","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-evidence"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"The board of a company occupying its head office announces that it is considering letting it in two years. What should be concluded today?","es":""},"explanation":{"fr":"","en":"A change of intention, by itself, does not evidence a change in use (IAS 40, para. 57).","es":""},"common_error":{"fr":"","en":"Transferring as soon as a plan is announced.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: a change of intention alone is not evidence, the property stays owner-occupied","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Transfer the property to investment property immediately","es":""},"correct":false,"feedback":{"fr":"","en":"Intention alone does not justify the transfer (IAS 40, para. 57).","es":""}},{"id":"C","text":{"fr":"","en":"Remeasure the property at fair value through profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"No transfer takes place, so no transfer measurement (IAS 40, para. 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000076","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.EVIDENCE_NOT_INTENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"EVIDENCE_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-evidence"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"Classify each fact: evidence of a change in use, or mere intention.","es":""},"explanation":{"fr":"","en":"An observable fact shows the change; intention alone shows nothing (IAS 40, para. 57).","es":""},"common_error":{"fr":"","en":"Taking any internal document as evidence.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ev","text":{"fr":"","en":"Evidence of a change in use","es":""}},{"id":"in","text":{"fr":"","en":"Mere intention","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Signature of a lease with a tenant for a property previously occupied","es":""},"category":"ev"},{"id":"b","text":{"fr":"","en":"Start of works to move the teams into a property previously let","es":""},"category":"ev"},{"id":"c","text":{"fr":"","en":"The manager mentions orally a possible future letting","es":""},"category":"in"},{"id":"d","text":{"fr":"","en":"An unapproved strategic plan envisages moving into the property one day","es":""},"category":"in"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000077","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.COST_MODEL_NO_CHANGE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"COST_MODEL_NO_REMEASURE","difficulty":"BEGINNER","estimated_time_s":55,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-cost-model"},"references":["IAS 40 §59"],"exercise":{"prompt":{"fr":"","en":"An entity using the cost model transfers an investment property (cost €1,800,000, accumulated depreciation €300,000) to owner-occupied property. What is the carrying amount after the transfer?","es":""},"explanation":{"fr":"","en":"Cost model: 1,800,000 − 300,000 = 1,500,000, unchanged by the transfer (IAS 40).","es":""},"common_error":{"fr":"","en":"Applying fair value logic to the cost model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value at the date of transfer","es":""},"correct":false,"feedback":{"fr":"","en":"Under the cost model, the transfer does not change the carrying amount (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"€1,500,000, unchanged","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€1,800,000, the original cost alone","es":""},"correct":false,"feedback":{"fr":"","en":"Accumulated depreciation stays deducted: the carrying amount is unchanged (IAS 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000078","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP","IAS40.TRANSFERS.INVENTORY_TO_IP","IAS40.TRANSFERS.IP_TO_OWNER_OCCUPIED","IAS40.TRANSFERS.IP_TO_INVENTORY"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"DIRECTION_TREATMENT_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60","IAS 40 §61","IAS 40 §62","IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"Fair value model: match each transfer to its treatment.","es":""},"explanation":{"fr":"","en":"Investment to owner-occupied: deemed cost (IAS 40, para. 60); owner-occupied to investment: IAS 16 revaluation (IAS 40, paras. 61-62); inventory to investment: profit or loss (IAS 40, para. 63).","es":""},"common_error":{"fr":"","en":"Applying the profit-or-loss treatment to every direction.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Investment property to owner-occupied","es":""}},{"id":"l2","text":{"fr":"","en":"Owner-occupied to investment property","es":""}},{"id":"l3","text":{"fr":"","en":"Inventory to investment property","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Fair value becomes the deemed cost","es":""}},{"id":"r2","text":{"fr":"","en":"The difference is treated as a revaluation under IAS 16","es":""}},{"id":"r3","text":{"fr":"","en":"The difference is recognised in profit or loss","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000079","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"OO_TO_IP_DIFFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"numeric-oo-ip"},"references":["IAS 40 §61","IAS 40 §62","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"An owner-occupied property (cost €2,000,000, accumulated depreciation €400,000) becomes investment property under the fair value model; fair value at the date is €1,900,000 (case data). Calculate the carrying amount at the date and the difference treated as a revaluation under IAS 16.","es":""},"explanation":{"fr":"","en":"2,000,000 − 400,000 = 1,600,000; 1,900,000 − 1,600,000 = 300,000, increase taken to revaluation surplus (IAS 40, paras. 61-62) (IAS 16). Case convention: no prior impairment or surplus is given, so the increase goes to revaluation surplus.","es":""},"common_error":{"fr":"","en":"Comparing fair value with gross cost instead of carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"1900000","unit":"EUR"}],"steps":[{"id":"cv","label":{"fr":"","en":"Carrying amount at the date","es":""},"answer":1600000,"tolerance":0,"unit":"EUR"},{"id":"diff","label":{"fr":"","en":"Difference (increase)","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"cv","meaning":{"fr":"","en":"Carrying amount at the date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":400000,"unit":"EUR"}],"result":1600000,"unit":"EUR"},{"step":"diff","meaning":{"fr":"","en":"Difference (increase)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value","es":""},"value":1900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at the date","es":""},"value":1600000,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"references":["REF.IAS40.61","REF.IAS40.62"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000080","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_OO_TO_IP","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"entry-oo-ip"},"references":["IAS 40 §61","IAS 40 §62","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"Record the entry transferring an owner-occupied property to investment property: cost €2,000,000, accumulated depreciation €400,000, fair value €1,900,000, increase treated as an IAS 16 revaluation (fair value model).","es":""},"explanation":{"fr":"","en":"Debits 1,900,000 + 400,000 = 2,300,000; credits 2,000,000 + 300,000 = 2,300,000; the 300,000 increase goes to revaluation surplus (IAS 40, paras. 61-62) (IAS 16). Case convention: no prior impairment or surplus is given, so the increase goes to revaluation surplus.","es":""},"common_error":{"fr":"","en":"Crediting the increase to profit or loss as for inventory.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"acc","text":{"fr":"","en":"Accumulated depreciation","es":""}},{"id":"ppe","text":{"fr":"","en":"Property, plant and equipment (cost)","es":""}},{"id":"oci","text":{"fr":"","en":"Revaluation surplus (OCI)","es":""}},{"id":"pl","text":{"fr":"","en":"Fair value gain (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":1900000,"given":["account","side"]},{"id":"l2","account":"acc","side":"DEBIT","amount":400000,"given":["account","side"]},{"id":"l3","account":"ppe","side":"CREDIT","amount":2000000},{"id":"l4","account":"oci","side":"CREDIT","amount":300000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000081","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.INVENTORY_TO_IP"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_INVENTORY_TO_IP","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"numeric-inv-ip"},"references":["IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"A property inventory of €1,000,000 is transferred to investment property after a lease is signed; fair value is €1,150,000 (fair value model). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit property 1,150,000; credit inventory 1,000,000 and profit or loss gain 150,000 (IAS 40, para. 63).","es":""},"common_error":{"fr":"","en":"Crediting the difference to OCI.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"inv","text":{"fr":"","en":"Inventory","es":""}},{"id":"pl","text":{"fr":"","en":"Gain on transfer (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"Revaluation surplus (OCI)","es":""}}],"lines":[{"id":"l1","account":"ip","side":"DEBIT","amount":1150000,"given":["account","side"]},{"id":"l2","account":"inv","side":"CREDIT","amount":1000000},{"id":"l3","account":"pl","side":"CREDIT","amount":150000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000082","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_OWNER_OCCUPIED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_IP_TO_OWNER_OCCUPIED","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-ip-owner"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"An entity using the fair value model moves into an investment property carried at €3,200,000 at the date of the change in use (fair value is already updated). Record the transfer entry to owner-occupied property.","es":""},"explanation":{"fr":"","en":"The fair value of €3,200,000 becomes the deemed cost of the owner-occupied property (IAS 40, para. 60).","es":""},"common_error":{"fr":"","en":"Transferring at the old carrying amount instead of fair value.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ppe","text":{"fr":"","en":"Property, plant and equipment (owner-occupied)","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property","es":""}}],"lines":[{"id":"l1","account":"ppe","side":"DEBIT","amount":3200000,"given":["account","side"]},{"id":"l2","account":"ip","side":"CREDIT","amount":3200000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000083","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_INVENTORY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"IP_TO_INVENTORY_DEEMED_COST","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-ip-inventory"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"An investment property under the fair value model is put into development with a view to sale; its fair value at the date of the change in use is €2,400,000. At what cost does it enter inventory?","es":""},"explanation":{"fr":"","en":"To inventory, the deemed cost is fair value at the date (IAS 40, para. 60).","es":""},"common_error":{"fr":"","en":"Taking the historical cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The original acquisition cost","es":""},"correct":false,"feedback":{"fr":"","en":"The deemed cost is fair value at the date of the change (IAS 40, para. 60).","es":""}},{"id":"B","text":{"fr":"","en":"€2,400,000, fair value becoming deemed cost","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The expected selling price after development","es":""},"correct":false,"feedback":{"fr":"","en":"The future selling price is not the deemed cost (IAS 40, para. 60).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000084","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.COST_MODEL_NO_CHANGE","IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP","IAS40.TRANSFERS.INVENTORY_TO_IP"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"TRANSFER_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"pitfalls"},"references":["IAS 40 §57","IAS 40 §59","IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about transfers.","es":""},"explanation":{"fr":"","en":"Evidence required; amounts unchanged under cost; inventory to investment through profit or loss (IAS 40, para. 57) (IAS 40, para. 63).","es":""},"common_error":{"fr":"","en":"Applying the same measurement rule to all transfers.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"Under the cost model, a transfer does not change the carrying amount of the property.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"Under the fair value model, the difference on inventory transferred to investment goes to other comprehensive income.","es":""},"erroneous":true,"correction":{"fr":"","en":"For inventory, the difference is recognised in profit or loss (IAS 40, para. 63).","es":""}},{"id":"c","text":{"fr":"","en":"A change in management's intention is enough to transfer an owner-occupied property to investment.","es":""},"erroneous":true,"correction":{"fr":"","en":"A change in intention, by itself, is not evidence of a change in use (IAS 40, para. 57).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000085","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE","IAS40.TRANSFERS.EVIDENCE_NOT_INTENT","IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"CORVANE_TRANSFER_CASE","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS40.000009","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"judgment"},"references":["IAS 40 §57","IAS 40 §61","IAS 40 §62","IAS 40 §63","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"The transfer of Corvane's head office.","es":""},"explanation":{"fr":"","en":"The date and evidence of the change in use fix the transfer; the difference follows the direction of the transfer.","es":""},"common_error":{"fr":"","en":"Dating the transfer at the announcement of the intention.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Corvane (fair value model) occupies its head office (cost €1,500,000, accumulated depreciation €300,000). On 1 March, the board announces it is considering letting it. On 1 July, it moves out and signs a 9-year lease with a tenant. At that date, fair value is €1,450,000.","es":""},"parts":[{"prompt":{"fr":"","en":"On what date is the transfer to investment property justified?","es":""},"explanation":{"fr":"","en":"The date of the evidenced change in use is 1 July (IAS 40, para. 57).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 July, the date of moving out and the signed lease","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"1 March, the date of the board announcement","es":""},"correct":false,"feedback":{"fr":"","en":"The announcement is an intention, not evidence of a change in use (IAS 40, para. 57).","es":""}},{"id":"C","text":{"fr":"","en":"At the year end, whatever the date of the lease","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer follows the date of the change in use, not the year end (IAS 40, para. 57).","es":""}}],"id":"p1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the carrying amount at 1 July and the difference to treat as an IAS 16 revaluation.","es":""},"explanation":{"fr":"","en":"1,500,000 − 300,000 = 1,200,000; 1,450,000 − 1,200,000 = 250,000 (IAS 40, paras. 61-62).","es":""},"common_error":{"fr":"","en":"Taking the gap to profit or loss as a fair value change: on transfer of an owner-occupied property, it is treated as an IAS 16 revaluation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value on 1 July","es":""},"value":"1450000","unit":"EUR"}],"steps":[{"id":"cv","label":{"fr":"","en":"Carrying amount","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"},{"id":"diff","label":{"fr":"","en":"Difference","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"cv","meaning":{"fr":"","en":"Carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":300000,"unit":"EUR"}],"result":1200000,"unit":"EUR"},{"step":"diff","meaning":{"fr":"","en":"Difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value on 1 July","es":""},"value":1450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1200000,"unit":"EUR"}],"result":250000,"unit":"EUR"}],"references":["REF.IAS40.61","REF.IAS40.62"]}},{"prompt":{"fr":"","en":"Where is this difference of €250,000 recognised?","es":""},"explanation":{"fr":"","en":"Increase treated as a revaluation: revaluation surplus in OCI (IAS 40, paras. 61-62) (IAS 16). Case convention: no prior impairment or surplus is given.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income (revaluation surplus), the difference being an increase treated as a revaluation","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In profit or loss, as for inventory","es":""},"correct":false,"feedback":{"fr":"","en":"Profit or loss is the treatment of inventory, not owner-occupied property (IAS 40, para. 63).","es":""}},{"id":"C","text":{"fr":"","en":"Nowhere: the property stays at its carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"Under the fair value model the difference is recognised (IAS 40, paras. 61-62).","es":""}}],"id":"p3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000086","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DERECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"DERECOGNITION_TRIGGERS","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-derecognition"},"references":["IAS 40 §66"],"exercise":{"prompt":{"fr":"","en":"In which cases is an investment property derecognised? Several answers.","es":""},"explanation":{"fr":"","en":"Two cases: disposal, or permanent withdrawal with no future benefit (IAS 40, para. 66).","es":""},"common_error":{"fr":"","en":"Derecognising on a mere fall in value or intention to sell.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When its fair value falls by 10%","es":""},"correct":false,"feedback":{"fr":"","en":"A fall in value is not enough to derecognise (IAS 40, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"When management considers selling it","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to sell is not a disposal (IAS 40, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"On its disposal","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"When it is permanently withdrawn from use and no future benefit is expected from its disposal","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000087","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DATE_OF_DISPOSAL"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"DISPOSAL_DATE_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-date"},"references":["IAS 40 §67","IAS 16 §69"],"exercise":{"prompt":{"fr":"","en":"A property sale contract is signed on 15 November; the keys are handed over and control passes to the buyer on 10 December (case data). What is the date of disposal?","es":""},"explanation":{"fr":"","en":"The disposal takes place when the recipient obtains control (IAS 40) (IAS 16).","es":""},"common_error":{"fr":"","en":"Dating the disposal at signature.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"15 November, the date of signature","es":""},"correct":false,"feedback":{"fr":"","en":"Signature is not the transfer of control (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"31 December, the year-end date","es":""},"correct":false,"feedback":{"fr":"","en":"The year end does not fix the date of disposal (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"10 December, the date control transfers","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000088","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"GAIN_COST_MODEL_CALC","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"numeric-disposal"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Cost model. A property with cost €2,000,000 and accumulated depreciation €500,000 is sold for €1,800,000, with €30,000 of costs of disposal. Calculate net proceeds and the gain or loss on disposal.","es":""},"explanation":{"fr":"","en":"1,800,000 − 30,000 = 1,770,000; 2,000,000 − 500,000 = 1,500,000; 1,770,000 − 1,500,000 = 270,000 (IAS 40, para. 69).","es":""},"common_error":{"fr":"","en":"Comparing the selling price with the original cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Selling price","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net proceeds","es":""},"answer":1770000,"tolerance":0,"unit":"EUR"},{"id":"cv","label":{"fr":"","en":"Carrying amount","es":""},"answer":1500000,"tolerance":0,"unit":"EUR"},{"id":"gain","label":{"fr":"","en":"Gain on disposal","es":""},"answer":270000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net proceeds","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling price","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":30000,"unit":"EUR"}],"result":1770000,"unit":"EUR"},{"step":"cv","meaning":{"fr":"","en":"Carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":500000,"unit":"EUR"}],"result":1500000,"unit":"EUR"},{"step":"gain","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net proceeds","es":""},"value":1770000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1500000,"unit":"EUR"}],"result":270000,"unit":"EUR"}],"references":["REF.IAS40.69"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000089","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_DISPOSAL_COST_MODEL","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"entry"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Cost model. Record the disposal entry: cost €2,000,000, accumulated depreciation €500,000, cash received net of costs of disposal €1,770,000, gain €270,000.","es":""},"explanation":{"fr":"","en":"Debits 1,770,000 + 500,000 = 2,270,000; credits 2,000,000 + 270,000 = 2,270,000 (IAS 40, para. 69).","es":""},"common_error":{"fr":"","en":"Forgetting to clear accumulated depreciation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"acc","text":{"fr":"","en":"Accumulated depreciation","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property (cost)","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":1770000,"given":["account","side"]},{"id":"l2","account":"acc","side":"DEBIT","amount":500000,"given":["account","side"]},{"id":"l3","account":"ip","side":"CREDIT","amount":2000000},{"id":"l4","account":"gain","side":"CREDIT","amount":270000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000090","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_DISPOSAL_FV_MODEL","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"numeric-disposal"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Fair value model. A property carried at €2,100,000 (fair value updated at the date of disposal) is sold for €2,150,000 with €25,000 of costs of disposal paid. Record the disposal entry.","es":""},"explanation":{"fr":"","en":"Net proceeds 2,150,000 − 25,000 = 2,125,000; gain 2,125,000 − 2,100,000 = 25,000 (IAS 40, para. 69).","es":""},"common_error":{"fr":"","en":"Comparing the gross price with the carrying amount without deducting costs.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash (net of costs)","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":2125000,"given":["account","side"]},{"id":"l2","account":"ip","side":"CREDIT","amount":2100000},{"id":"l3","account":"gain","side":"CREDIT","amount":25000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000091","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.REPLACED_PARTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"REPLACED_PART_DERECOGNITION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-replaced"},"references":["IAS 40 §68","IAS 16 §70"],"exercise":{"prompt":{"fr":"","en":"Cost model. A new roof of €120,000 is recognised in the asset; the old roof had a carrying amount of €18,000. Calculate the net change in the property and the derecognition expense.","es":""},"explanation":{"fr":"","en":"120,000 − 18,000 = 102,000; the carrying amount of the old part, 18,000, is derecognised (IAS 40) (IAS 16).","es":""},"common_error":{"fr":"","en":"Adding 120,000 without removing the old part.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"New roof","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Old roof, carrying amount","es":""},"value":"18000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net change in the property","es":""},"answer":102000,"tolerance":0,"unit":"EUR"},{"id":"exp","label":{"fr":"","en":"Derecognition expense","es":""},"answer":18000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net change in the property","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New roof","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Old roof, carrying amount","es":""},"value":18000,"unit":"EUR"}],"result":102000,"unit":"EUR"}],"references":["REF.IAS40.68","REF.IAS16.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000092","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.CONSIDERATION_IFRS15"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"VARIABLE_CONSIDERATION_GAIN","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-consideration"},"references":["IAS 40 §70","IFRS 15 §56"],"exercise":{"prompt":{"fr":"","en":"A property with a carrying amount of €1,400,000 is sold for €1,500,000 plus a conditional additional amount of which €80,000 is to be included in the transaction price after applying the IFRS 15 limit (case data). Costs of disposal are €20,000. Calculate net proceeds and the gain on disposal.","es":""},"explanation":{"fr":"","en":"1,500,000 + 80,000 − 20,000 = 1,560,000; 1,560,000 − 1,400,000 = 160,000 (IAS 40) (IFRS 15, para. 56).","es":""},"common_error":{"fr":"","en":"Including the whole conditional amount without limit.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fixed price","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Variable part included","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount","es":""},"value":"1400000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net proceeds","es":""},"answer":1560000,"tolerance":0,"unit":"EUR"},{"id":"gain","label":{"fr":"","en":"Gain on disposal","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net proceeds","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed price","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Variable part included","es":""},"value":80000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":20000,"unit":"EUR"}],"result":1560000,"unit":"EUR"},{"step":"gain","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net proceeds","es":""},"value":1560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1400000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"references":["REF.IFRS15.56"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000093","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.RETAINED_LIABILITIES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"RETAINED_WARRANTY","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-retained"},"references":["IAS 40 §71"],"exercise":{"prompt":{"fr":"","en":"After selling a property, the seller remains liable to pay the buyer an indemnity if a hidden defect appears (commitment to be measured, case data). How should this commitment be treated?","es":""},"explanation":{"fr":"","en":"Retained liabilities fall under their applicable standards (IAS 40).","es":""},"common_error":{"fr":"","en":"Treating the commitment as a mere cost of disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the standard applicable to that liability, separately from the gain on disposal","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deduct it automatically from the price as a cost of disposal","es":""},"correct":false,"feedback":{"fr":"","en":"A retained liability follows its own standard (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"Ignore it until the loss is certain","es":""},"correct":false,"feedback":{"fr":"","en":"The standard applicable to the liability determines when and how to recognise it (IAS 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000094","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.THIRD_PARTY_COMPENSATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"FIRE_COMPENSATION_NET","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-compensation"},"references":["IAS 40 §72","IAS 40 §73"],"exercise":{"prompt":{"fr":"","en":"Cost model. A fire destroys a property with a carrying amount of €900,000. The insurer must pay €700,000 (now receivable). A replacement property is bought for €1,000,000. Calculate the net effect in profit or loss.","es":""},"explanation":{"fr":"","en":"−900,000 (derecognition) + 700,000 (compensation) = −200,000; the replacement property is an asset at cost, with no effect in profit or loss (IAS 40).","es":""},"common_error":{"fr":"","en":"Deducting the cost of the replacement property from profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the destroyed property","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Compensation receivable","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Replacement property","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net effect in profit or loss","es":""},"answer":-200000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000095","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.THIRD_PARTY_COMPENSATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"JE_COMPENSATION_RECEIVABLE","difficulty":"EXPERT","estimated_time_s":100,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-compensation"},"references":["IAS 40 §72","IAS 16 §65"],"exercise":{"prompt":{"fr":"","en":"An insurance compensation of €700,000 becomes receivable for a destroyed property. Record the compensation entry (the derecognition of the property is booked separately).","es":""},"explanation":{"fr":"","en":"Debit receivable 700,000; credit compensation income 700,000, in profit or loss when it becomes receivable (IAS 40) (IAS 16).","es":""},"common_error":{"fr":"","en":"Crediting the compensation to the property account.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"rec","text":{"fr":"","en":"Insurance compensation receivable","es":""}},{"id":"inc","text":{"fr":"","en":"Insurance compensation (profit or loss)","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property","es":""}}],"lines":[{"id":"l1","account":"rec","side":"DEBIT","amount":700000,"given":["account","side"]},{"id":"l2","account":"inc","side":"CREDIT","amount":700000,"given":["side","amount"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000096","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DERECOGNITION","IAS40.DISPOSAL.GAIN_LOSS","IAS40.DISPOSAL.DATE_OF_DISPOSAL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"CALVANE_DISPOSAL_CASE","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS40.000010","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"judgment"},"references":["IAS 40 §67","IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"The disposal of Sarvane's warehouse.","es":""},"explanation":{"fr":"","en":"The disposal date follows control; the result follows net proceeds and carrying amount.","es":""},"common_error":{"fr":"","en":"Using the date of the promise or the year end.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Sarvane (cost model) sells an investment warehouse (cost €2,400,000, accumulated depreciation €600,000) for €2,100,000, costs of disposal €40,000. The sale promise is signed on 20 November; the buyer takes control on 5 December; the year end is 31 December.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the date of disposal?","es":""},"explanation":{"fr":"","en":"Disposal at the date control transfers (IAS 40).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 December, when the buyer takes control","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"20 November, the date of the sale promise","es":""},"correct":false,"feedback":{"fr":"","en":"The promise is not the transfer of control (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"31 December, the year end","es":""},"correct":false,"feedback":{"fr":"","en":"The year end does not fix the date of disposal (IAS 40).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate net proceeds, carrying amount and the gain on disposal.","es":""},"explanation":{"fr":"","en":"2,100,000 − 40,000 = 2,060,000; 2,400,000 − 600,000 = 1,800,000; 2,060,000 − 1,800,000 = 260,000 (IAS 40, para. 69).","es":""},"common_error":{"fr":"","en":"Comparing gross price with original cost: the result on disposal is net proceeds, costs deducted, less carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Costs","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Cost and depreciation","es":""},"value":"2400000 / 600000","unit":"EUR"}],"steps":[{"id":"net","label":{"fr":"","en":"Net proceeds","es":""},"answer":2060000,"tolerance":0,"unit":"EUR"},{"id":"cv","label":{"fr":"","en":"Carrying amount","es":""},"answer":1800000,"tolerance":0,"unit":"EUR"},{"id":"gain","label":{"fr":"","en":"Gain on disposal","es":""},"answer":260000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"net","meaning":{"fr":"","en":"Net proceeds","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price","es":""},"value":2100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs","es":""},"value":40000,"unit":"EUR"}],"result":2060000,"unit":"EUR"},{"step":"gain","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net proceeds","es":""},"value":2060000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1800000,"unit":"EUR"}],"result":260000,"unit":"EUR"}],"references":["REF.IAS40.69"]}},{"prompt":{"fr":"","en":"Record the disposal entry (cash net).","es":""},"explanation":{"fr":"","en":"Debits 2,060,000 + 600,000 = 2,660,000; credits 2,400,000 + 260,000 = 2,660,000 (IAS 40, para. 69).","es":""},"common_error":{"fr":"","en":"Removing only the net amount or omitting accumulated depreciation: cost and depreciation are removed; the gap with net proceeds is the gain.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"acc","text":{"fr":"","en":"Accumulated depreciation","es":""}},{"id":"ip","text":{"fr":"","en":"Investment property (cost)","es":""}},{"id":"gain","text":{"fr":"","en":"Gain on disposal (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":2060000,"given":["account","side"]},{"id":"l2","account":"acc","side":"DEBIT","amount":600000,"given":["account","side"]},{"id":"l3","account":"ip","side":"CREDIT","amount":2400000},{"id":"l4","account":"gain","side":"CREDIT","amount":260000}],"id":"p3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000097","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.MODEL_AND_CRITERIA"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCLOSE_MODEL","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-general"},"references":["IAS 40 §75"],"exercise":{"prompt":{"fr":"","en":"An entity measuring its investment property at cost need not state its model in the notes.","es":""},"explanation":{"fr":"","en":"The model adopted is a general disclosure in all cases (IAS 40, para. 75).","es":""},"common_error":{"fr":"","en":"Reserving model disclosure for fair value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000098","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"COST_MODEL_DISCLOSURE_MC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-cost-disc"},"references":["IAS 40 §79"],"exercise":{"prompt":{"fr":"","en":"Which disclosures are specific to the cost model? Several answers.","es":""},"explanation":{"fr":"","en":"Methods, lives and fair value in the notes (IAS 40, para. 79).","es":""},"common_error":{"fr":"","en":"Expecting fair value adjustments under cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The useful lives or depreciation rates","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fair value of the properties, disclosed in the notes","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Fair value adjustments recognised in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"These adjustments do not exist under the cost model (IAS 40, para. 79).","es":""}},{"id":"D","text":{"fr":"","en":"The depreciation methods","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000099","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.FV_MODEL_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"RECONCILIATION_CLOSING","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"numeric-recon"},"references":["IAS 40 §76"],"exercise":{"prompt":{"fr":"","en":"Fair value model. Opening amount €5,000,000; acquisitions €800,000; fair value increases €250,000; decreases €120,000; transfer from inventory €200,000; disposals €600,000. Calculate the net adjustments and the closing carrying amount.","es":""},"explanation":{"fr":"","en":"250,000 − 120,000 = 130,000; 5,000,000 + 800,000 + 130,000 + 200,000 − 600,000 = 5,530,000 (IAS 40, para. 76).","es":""},"common_error":{"fr":"","en":"Subtracting the increases or forgetting the disposals.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening amount","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Acquisitions","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Transfer from inventory","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Disposals","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"adj","label":{"fr":"","en":"Net fair value adjustments","es":""},"answer":130000,"tolerance":0,"unit":"EUR"},{"id":"close","label":{"fr":"","en":"Closing carrying amount","es":""},"answer":5530000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"close","meaning":{"fr":"","en":"Closing carrying amount","es":""},"expression":"a + b + c + d - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening amount","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisitions","es":""},"value":800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net fair value adjustments","es":""},"value":130000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Transfer from inventory","es":""},"value":200000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Disposals","es":""},"value":600000,"unit":"EUR"}],"result":5530000,"unit":"EUR"}],"references":["REF.IAS40.76"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000100","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.FV_MODEL_RECONCILIATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"RECONCILIATION_LINES","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-recon"},"references":["IAS 40 §76"],"exercise":{"prompt":{"fr":"","en":"Fair value model reconciliation: does the line appear in the reconciliation?","es":""},"explanation":{"fr":"","en":"The reconciliation shows acquisitions, fair value adjustments, transfers and disposals; there is no depreciation under this model (IAS 40, para. 76).","es":""},"common_error":{"fr":"","en":"Including depreciation in a model that has none.","es":""},"format":"CLASSIFICATION","categories":[{"id":"in","text":{"fr":"","en":"In the reconciliation","es":""}},{"id":"out","text":{"fr":"","en":"Outside the reconciliation","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Acquisitions of the year","es":""},"category":"in"},{"id":"b","text":{"fr":"","en":"Fair value adjustments","es":""},"category":"in"},{"id":"c","text":{"fr":"","en":"Transfers from or to inventory and owner-occupied property","es":""},"category":"in"},{"id":"d","text":{"fr":"","en":"Disposals","es":""},"category":"in"},{"id":"e","text":{"fr":"","en":"Building depreciation charge","es":""},"category":"out"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000101","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.IFRS16_ADDITIONAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"ROU_DISCLOSURE_APPLICATION","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-leases-disc"},"references":["IAS 40 §74"],"exercise":{"prompt":{"fr":"","en":"A lessee holds a floor through a right-of-use asset that meets the definition of investment property. What disclosures does it give?","es":""},"explanation":{"fr":"","en":"The disclosures of both standards apply (IAS 40).","es":""},"common_error":{"fr":"","en":"Applying only one of the two standards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those of IAS 40 and, in addition, those IFRS 16 requires of the lessee for that right","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only those of IAS 40","es":""},"correct":false,"feedback":{"fr":"","en":"The IFRS 16 information linked to the right-of-use asset is added (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"None, the right-of-use asset being excluded from the notes","es":""},"correct":false,"feedback":{"fr":"","en":"A right-of-use asset held as an investment gives rise to disclosures (IAS 40).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS40.000102","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.MODEL_AND_CRITERIA","IAS40.DISCLOSURE.FV_MODEL_RECONCILIATION","IAS40.DISCLOSURE.COST_MODEL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DISCLOSURE_ERROR_SPOT","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"pitfalls"},"references":["IAS 40 §14","IAS 40 §75","IAS 40 §76","IAS 40 §79"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about disclosures.","es":""},"explanation":{"fr":"","en":"Disclosures vary by model, but some are common (IAS 40, para. 75) (IAS 40, para. 76) (IAS 40, para. 79).","es":""},"common_error":{"fr":"","en":"Applying one model's disclosures to the other.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"Under the fair value model, the reconciliation shows acquisitions, fair value adjustments, transfers and disposals.","es":""},"erroneous":false},{"id":"b","text":{"fr":"","en":"Under the cost model, no fair value information is required.","es":""},"erroneous":true,"correction":{"fr":"","en":"Fair value is disclosed in the notes under the cost model (IAS 40, para. 79).","es":""}},{"id":"c","text":{"fr":"","en":"The classification criteria for hard-to-classify properties need not be disclosed.","es":""},"erroneous":true,"correction":{"fr":"","en":"The criteria are disclosed when classification is difficult (IAS 40, para. 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000103","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.FV_MODEL_RECONCILIATION","IAS40.DISCLOSURE.MODEL_AND_CRITERIA"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"BREVANE_NOTES_REVIEW","difficulty":"EXPERT","estimated_time_s":210,"lesson_id":"LS.IAS40.000011","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"judgment"},"references":["IAS 40 §33","IAS 40 §75","IAS 40 §76"],"exercise":{"prompt":{"fr":"","en":"Review of Brévane's notes.","es":""},"explanation":{"fr":"","en":"The notes must tie to the accounts and cover the general disclosures.","es":""},"common_error":{"fr":"","en":"Publishing a reconciliation that does not agree with the statement of financial position.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: Brévane (fair value model) reports investment property of €5,530,000. Its reconciliation shows: opening €5,000,000, acquisitions €800,000, net adjustments €130,000, transfer from inventory €200,000, disposals €500,000. The notes do not say whether fair value is based on an independent valuer and do not mention restrictions.","es":""},"parts":[{"prompt":{"fr":"","en":"Recompute the closing amount from the reconciliation and the gap with the statement of financial position.","es":""},"explanation":{"fr":"","en":"5,000,000 + 800,000 + 130,000 + 200,000 − 500,000 = 5,630,000; 5,630,000 − 5,530,000 = 100,000: the reconciliation does not agree with the statement of financial position (IAS 40, para. 76).","es":""},"common_error":{"fr":"","en":"Forcing the reconciliation to agree with the balance sheet without analysing the gap: a gap signals a missing or wrong movement to identify.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Net movements","es":""},"value":"800000 + 130000 + 200000 − 500000","unit":"EUR"},{"label":{"fr":"","en":"Statement of financial position","es":""},"value":"5530000","unit":"EUR"}],"steps":[{"id":"close","label":{"fr":"","en":"Closing amount per reconciliation","es":""},"answer":5630000,"tolerance":0,"unit":"EUR"},{"id":"gap","label":{"fr":"","en":"Gap with the statement of financial position","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"gap","meaning":{"fr":"","en":"Gap with the statement of financial position","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing amount per reconciliation","es":""},"value":5630000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Statement of financial position","es":""},"value":5530000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"references":["REF.IAS40.76"]}},{"prompt":{"fr":"","en":"Which general disclosures are missing from the notes? Several answers.","es":""},"explanation":{"fr":"","en":"Use of an independent valuer, restrictions and obligations are part of the general disclosures (IAS 40, para. 75).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whether an independent valuer was used","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Significant restrictions and contractual obligations","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The yearly building depreciation","es":""},"correct":false,"feedback":{"fr":"","en":"There is no depreciation under the fair value model (IAS 40, para. 33).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000104","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.TRANSFERS_2016"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"AMENDMENT_2016_DATE","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-2016"},"references":["IAS 40 §85G"],"exercise":{"prompt":{"fr":"","en":"The 2016 amendment to IAS 40 on transfers applies:","es":""},"explanation":{"fr":"","en":"Periods beginning on or after 1 January 2018 (IAS 40).","es":""},"common_error":{"fr":"","en":"Confusing periods beginning with periods ending.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To periods ended on or after 1 January 2016","es":""},"correct":false,"feedback":{"fr":"","en":"The date concerns periods beginning from 2018, not ended in 2016 (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"Only to new entities, with no early application","es":""},"correct":false,"feedback":{"fr":"","en":"Early application is permitted (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"To annual periods beginning on or after 1 January 2018, early application permitted","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000105","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.TRANSFERS_2016"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FIRST_PERIOD_JUNE_YEAR_END","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-2016"},"references":["IAS 40 §85G"],"exercise":{"prompt":{"fr":"","en":"An entity closes its accounts on 30 June. For which period does it apply the 2016 amendment at the latest (without early application), applicable to periods beginning on or after 1 January 2018?","es":""},"explanation":{"fr":"","en":"The first period beginning on or after 1 January 2018 starts on 1 July 2018 (IAS 40).","es":""},"common_error":{"fr":"","en":"Looking at the closing date instead of the opening date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The period ended 30 June 2018","es":""},"correct":false,"feedback":{"fr":"","en":"That period began on 1 July 2017, before 2018 (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"The period beginning 1 July 2019 and ending 30 June 2020","es":""},"correct":false,"feedback":{"fr":"","en":"An earlier period, beginning 1 July 2018, is already concerned (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"The period beginning 1 July 2018 and ending 30 June 2019","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000106","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"TRANSITION_PROVISIONS_ROLE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-general"},"references":["IAS 40 §80","IAS 40 §84"],"exercise":{"prompt":{"fr":"","en":"What is the role of a standard's transitional provisions? Several answers.","es":""},"explanation":{"fr":"","en":"Transitional provisions govern the move to the amended version (IAS 40).","es":""},"common_error":{"fr":"","en":"Seeing transition as a new substantive rule.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Indicate whether application is prospective or retrospective","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Change the definition of investment property","es":""},"correct":false,"feedback":{"fr":"","en":"They organise the move to a rule without changing its content (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"Say how to move from an old rule to a new one","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000107","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.EFFECTIVE_DATES"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"EFFECTIVE_DATES_MATCH","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-effective"},"references":["IAS 40 §84C","IAS 40 §85"],"exercise":{"prompt":{"fr":"","en":"Match each notion to its function.","es":""},"explanation":{"fr":"","en":"Each notion has a distinct role (IAS 40, para. 84C).","es":""},"common_error":{"fr":"","en":"Confusing transition with effective date.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Transitional provision","es":""}},{"id":"l2","text":{"fr":"","en":"Effective date","es":""}},{"id":"l3","text":{"fr":"","en":"Early application","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Says how to move to the new version","es":""}},{"id":"r2","text":{"fr":"","en":"Says from when the amendment applies","es":""}},{"id":"r3","text":{"fr":"","en":"Allows application before the effective date","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS40.000108","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.GENERAL","IAS40.TRANSITION.TRANSFERS_2016","IAS40.TRANSITION.EFFECTIVE_DATES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EDITION_FOR_PERIOD","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"judgment"},"references":["IAS 40 §84C","IAS 40 §85"],"exercise":{"prompt":{"fr":"","en":"Before handling an IAS 40 engagement, what must the professional do? Several answers.","es":""},"explanation":{"fr":"","en":"The version in force for the period applies, with its transitional provisions (IAS 40, para. 84C).","es":""},"common_error":{"fr":"","en":"Ignoring the period in favour of the most recent edition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Find the version of the standard in force for that period","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Read the transitional provisions of the applicable amendments","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Apply the most recent version as a rule, whatever the period","es":""},"correct":false,"feedback":{"fr":"","en":"An amendment takes effect only from its effective date (IAS 40).","es":""}},{"id":"D","text":{"fr":"","en":"Fix the period concerned","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000109","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS16_BASELINE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REAL_ESTATE","tested_point":"OWNER_OCCUPIED_UNDER_IAS16","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias16"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"An owner-occupied property is accounted for under IAS 16, not IAS 40.","es":""},"explanation":{"fr":"","en":"Owner-occupied property is outside the definition of investment property (IAS 40, para. 5).","es":""},"common_error":{"fr":"","en":"Applying IAS 40 to every property.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000110","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS2_IAS16_IFRS15"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"WHICH_STANDARD_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-neighbours"},"references":["IAS 40 §5","IAS 2"],"exercise":{"prompt":{"fr":"","en":"Which main standard applies to each property?","es":""},"explanation":{"fr":"","en":"The role of the property determines the standard (IAS 40, para. 5) (IAS 2).","es":""},"common_error":{"fr":"","en":"Reasoning on the 'property' nature instead of the role.","es":""},"format":"CLASSIFICATION","categories":[{"id":"i40","text":{"fr":"","en":"IAS 40","es":""}},{"id":"i16","text":{"fr":"","en":"IAS 16","es":""}},{"id":"i2","text":{"fr":"","en":"IAS 2","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Property let to tenants","es":""},"category":"i40"},{"id":"b","text":{"fr":"","en":"Head office occupied by the company","es":""},"category":"i16"},{"id":"c","text":{"fr":"","en":"Flats built to be sold","es":""},"category":"i2"},{"id":"d","text":{"fr":"","en":"Land kept for capital appreciation","es":""},"category":"i40"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000111","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IFRS13_FAIR_VALUE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHO_MEASURES_FV","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ifrs13"},"references":["IAS 40 §5","IAS 40 §33","IFRS 13 §9","IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"Which standard says how to measure the fair value of an investment property?","es":""},"explanation":{"fr":"","en":"The measurement of fair value falls under IFRS 13 (IAS 40, paras. 5 and 33) (IFRS 13).","es":""},"common_error":{"fr":"","en":"Looking for the valuation method in IAS 40.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 40 itself, paragraph by paragraph","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 40 refers to IFRS 13 for the measurement (IAS 40, paras. 5 and 33).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 36, which gives the recoverable amount","es":""},"correct":false,"feedback":{"fr":"","en":"Recoverable amount is a different notion, relating to impairment (IAS 36, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 13, to which IAS 40 refers","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000112","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS36_COST_MODEL_IMPAIRMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"IMPAIRMENT_BY_MODEL","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias36"},"references":["IAS 36 §2","IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"An entity holds an investment property under the cost model; another entity holds an identical one under the fair value model. Which one is subject to IAS 36 impairment tests?","es":""},"explanation":{"fr":"","en":"IAS 36 concerns the cost model; fair value is out of scope (IAS 36, para. 2).","es":""},"common_error":{"fr":"","en":"Testing impairment of a property already remeasured at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the one at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"Investment property at fair value is outside the scope of IAS 36 (IAS 36, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"Both, in the same way","es":""},"correct":false,"feedback":{"fr":"","en":"The property at fair value is already remeasured at each reporting date (IAS 36).","es":""}},{"id":"C","text":{"fr":"","en":"The one under the cost model","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000113","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS12_DEFERRED_TAX_FV"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"DEFERRED_TAX_FV_INCREASE","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias12"},"references":["IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"An investment property at fair value has a carrying amount of €3,150,000 and a tax base of €3,000,000. The tax rate applicable to its recovery through sale is 25% (case data). Calculate the temporary difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"3,150,000 − 3,000,000 = 150,000; 25% × 150,000 = 37,500 (IAS 12).","es":""},"common_error":{"fr":"","en":"Applying the rate to the whole carrying amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate","es":""},"value":"25","unit":"%"}],"steps":[{"id":"td","label":{"fr":"","en":"Temporary difference","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"dtl","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"td","meaning":{"fr":"","en":"Temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":3000000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS12.20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000114","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS12_DEFERRED_TAX_FV"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"SALE_PRESUMPTION","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias12"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"For an investment property measured at fair value, which presumption applies for deferred tax, and when is it rebutted?","es":""},"explanation":{"fr":"","en":"Presumption of sale, rebuttable depending on the business model (IAS 12, para. 51C).","es":""},"common_error":{"fr":"","en":"Applying a presumption of use to the property at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recovery through use; never rebutted","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption is sale, and it is rebuttable (IAS 12, para. 51C).","es":""}},{"id":"B","text":{"fr":"","en":"No presumption: the entity chooses freely","es":""},"correct":false,"feedback":{"fr":"","en":"A rebuttable presumption is set (IAS 12, para. 51C).","es":""}},{"id":"C","text":{"fr":"","en":"Recovery through sale; rebutted if the property is depreciable and held to consume substantially all its benefits over time","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000115","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IFRS16_RIGHT_OF_USE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"ROU_FV_MODEL_FOLLOWS","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ifrs16"},"references":["IFRS 16 §29","IFRS 16 §34"],"exercise":{"prompt":{"fr":"","en":"A lessee applies the IAS 40 fair value model to its investment property and holds a right-of-use asset that meets the definition of investment property. How does it measure it after the commencement date?","es":""},"explanation":{"fr":"","en":"A lessee at IAS 40 fair value applies it to rights that meet the definition (IFRS 16, para. 34).","es":""},"common_error":{"fr":"","en":"Measuring the right-of-use asset at cost regardless of the IAS 40 model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the IFRS 16 cost model whatever happens","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee applying IAS 40 fair value applies it to these rights too (IFRS 16, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"At fair value, like its other investment property","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the lease liability amount, with no other measurement","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset is not measured by the lease liability (IFRS 16, para. 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000116","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS36_COST_MODEL_IMPAIRMENT","IAS40.INTERACTIONS.IAS12_DEFERRED_TAX_FV","IAS40.INTERACTIONS.IAS16_BASELINE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"BOUNDARY_ERROR_SPOT","difficulty":"EXPERT","estimated_time_s":100,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"pitfalls"},"references":["IAS 40 §35","IAS 36 §2","IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"Spot the erroneous statements about the boundaries of IAS 40.","es":""},"explanation":{"fr":"","en":"Each rule belongs to its standard: impairment out of scope at fair value, deferred tax present, change in profit or loss (IAS 36, para. 2) (IAS 12) (IAS 40, para. 35).","es":""},"common_error":{"fr":"","en":"Mixing the rules of several standards.","es":""},"format":"ERROR_SPOT","statements":[{"id":"a","text":{"fr":"","en":"An investment property at fair value is subject to IAS 36 impairment tests.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is outside the scope of IAS 36 (IAS 36, para. 2).","es":""}},{"id":"b","text":{"fr":"","en":"A fair value increase creates a temporary difference giving rise to deferred tax.","es":""},"erroneous":false},{"id":"c","text":{"fr":"","en":"An IAS 40 fair value change is taken to a revaluation surplus, as under IAS 16.","es":""},"erroneous":true,"correction":{"fr":"","en":"Under IAS 40, the change goes to profit or loss (IAS 40, para. 35).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000117","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS36_COST_MODEL_IMPAIRMENT","IAS40.INTERACTIONS.IAS12_DEFERRED_TAX_FV","IAS40.INTERACTIONS.IAS16_BASELINE","IAS40.INTERACTIONS.IFRS13_FAIR_VALUE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"LORVENE_BOUNDARY_FILE","difficulty":"EXPERT","estimated_time_s":200,"lesson_id":"LS.IAS40.000013","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"judgment"},"references":["IAS 40 §35","IAS 36 §2","IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"Lorvène's boundary file.","es":""},"explanation":{"fr":"","en":"Each boundary question is settled in the standard that deals with it.","es":""},"common_error":{"fr":"","en":"Applying IAS 16 or IAS 36 treatments to the fair value increase.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Teaching assumption: the fictitious company Lorvène applies the fair value model to a let property. The carrying amount goes from €3,000,000 to €3,150,000 at the reporting date (expert data, supplied). The tax base stays €3,000,000; the tax rate applicable to sale is 25% (case data). A colleague proposes: (a) taking the increase to a revaluation surplus, (b) testing for impairment, (c) ignoring deferred tax.","es":""},"parts":[{"prompt":{"fr":"","en":"Which of the colleague's proposals are wrong? Several answers.","es":""},"explanation":{"fr":"","en":"Profit or loss, outside IAS 36, deferred tax (IAS 40, para. 35) (IAS 36, para. 2) (IAS 12).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"(a) The increase goes to profit or loss, not to a revaluation surplus","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"(b) An investment property at fair value is outside the scope of IAS 36","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"(c) The gap between carrying amount and tax base gives rise to deferred tax","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: all three proposals are correct","es":""},"correct":false,"feedback":{"fr":"","en":"All three proposals contradict the rules of IAS 40, IAS 36 and IAS 12 (IAS 40, para. 35) (IAS 36, para. 2) (IAS 12).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the fair value increase and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"3,150,000 − 3,000,000 = 150,000; 25% × 150,000 = 37,500 (IAS 40, para. 35) (IAS 12).","es":""},"common_error":{"fr":"","en":"Applying the rate to the whole fair value: deferred tax applies to the increase, the new gap between carrying amount and tax base.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount before / after","es":""},"value":"3000000 / 3150000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"25","unit":"%"}],"steps":[{"id":"inc","label":{"fr":"","en":"Fair value increase","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"dtl","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"dtl","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"the tax rate applicable to sale is 25%","es":""},"value":25,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Fair value increase","es":""},"value":150000,"unit":"EUR"}],"result":37500,"unit":"EUR"}],"references":["REF.IAS40.35"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000118","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.OBJECTIVE","IAS40.SCOPE.GENERAL","IAS40.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"SCOPE_MINI","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS40.000001","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"rule-scope"},"references":["IAS 40 §1","IAS 40 §2","IAS 40 §4","IAS 40 §8"],"exercise":{"prompt":{"fr":"","en":"Determine what falls under IAS 40 in the Halvane estate's assets.","es":""},"explanation":{"fr":"","en":"Summary: the leased building (a) and the land held for capital appreciation (d) fall under IAS 40 (IAS 40, paras. 2 and 8), for their recognition, measurement and disclosure (IAS 40, paras. 1 and 2); the herd (b) and the gas reserves (c) are excluded (IAS 40, para. 4).","es":""},"common_error":{"fr":"","en":"Confusing what is attached to land with investment property, without checking the scope exclusions.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Halvane, an agricultural and land company (a fictitious entity), lists four items (case data): (a) an office building in town, leased to third parties; (b) a herd of cattle raised for sale; (c) natural gas reserves under one of its plots, for which it holds the extraction rights; (d) a vacant plot of land with no determined use, held for capital appreciation.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each item according to whether or not it falls under IAS 40.","es":""},"explanation":{"fr":"","en":"A leased building and land held for capital appreciation are examples of investment property (IAS 40, para. 8). Excluded from the scope are biological assets related to agricultural activity, such as a herd, and mineral rights and reserves, such as natural gas (IAS 40, para. 4).","es":""},"common_error":{"fr":"","en":"Including in IAS 40 everything attached to land, including the herd that grazes on it or the reserves underground.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Within IAS 40","es":""}},{"id":"OUT","text":{"fr":"","en":"Excluded from IAS 40","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"(a) The leased office building","es":""},"category":"IN"},{"id":"I2","text":{"fr":"","en":"(b) The cattle herd","es":""},"category":"OUT"},{"id":"I3","text":{"fr":"","en":"(c) The natural gas reserves","es":""},"category":"OUT"},{"id":"I4","text":{"fr":"","en":"(d) The land held for capital appreciation","es":""},"category":"IN"}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"For the office building (a), on which points does IAS 40 apply?","es":""},"explanation":{"fr":"","en":"The objective of IAS 40 is the accounting treatment of investment property and the related disclosures (IAS 40, para. 1); it applies to their recognition, measurement and disclosure (IAS 40, para. 2).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its recognition","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Its measurement","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The disclosures about it","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The choice of tenants and the setting of rents","es":""},"correct":false,"feedback":{"fr":"","en":"These are management decisions, not accounting questions: IAS 40 prescribes the accounting treatment of investment property and the related disclosures (IAS 40, paras. 1 and 2).","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"The natural gas reserves (c) are investment property, since they lie under land held by Halvane.","es":""},"explanation":{"fr":"","en":"False. Mineral rights and mineral reserves, such as oil, natural gas and similar non-regenerative resources, are excluded from the scope of IAS 40 (IAS 40, para. 4); they fall under other standards, whatever the land in which they lie.","es":""},"common_error":{"fr":"","en":"Extending the investment property classification of the land to the resources underground.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS40.000119","source":"V2","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.GENERAL","IAS40.TRANSITION.TRANSFERS_2016","IAS40.TRANSITION.EFFECTIVE_DATES"],"dimension":"APPLICATION","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"TRANSITION_2016_MINI","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS40.000012","review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-2016"},"references":["IAS 40 §84","IAS 40 §84C","IAS 40 §84D","IAS 40 §84E","IAS 40 §85G","IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"Apply to Ostrane the 2016 amendment on transfers of investment property.","es":""},"explanation":{"fr":"","en":"Approach: (1) date of initial application of the 2016 amendment, 1 January 2018 (IAS 40, paras. 85G and 84C); (2) reassessment of classification at that date and reclassification of the leased building: 3,400,000 as investment property, +400,000 in opening retained earnings (IAS 40, paras. 84C, 84E and 63); (3) no retrospective application without hindsight (IAS 40, para. 84D); (4) exchanges of assets: a separate, prospective provision (IAS 40, para. 84).","es":""},"common_error":{"fr":"","en":"Applying a single transition rule to the whole standard instead of reading the provision specific to each amendment.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ostrane, a property developer (a fictitious entity), has a 31 December year end and measures its investment property under the fair value model. It applies for the first time the 2016 amendment on transfers ('Transfers of Investment Property'), without early application. Case data: a building constructed for sale, carried in inventories at 3,000,000, has been leased to a third party under an operating lease since June 2017, which evidences a change in use; its fair value at the date of initial application is 3,400,000. Ostrane is not able to reconstruct past facts without the use of hindsight. In addition, in 2018, it exchanges one plot of land for another.","es":""},"parts":[{"prompt":{"fr":"","en":"What is Ostrane's date of initial application of the amendment?","es":""},"explanation":{"fr":"","en":"The 2016 amendment applies to annual periods beginning on or after 1 January 2018, earlier application permitted with disclosure (IAS 40, para. 85G). Without early application, Ostrane’s date of initial application is the beginning of its 2018 period, i.e. 1 January 2018 (IAS 40, para. 84C).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 January 2018, the beginning of the first annual period beginning on or after 1 January 2018","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"December 2016, the date the amendment was issued","es":""},"correct":false,"feedback":{"fr":"","en":"Issue does not make the amendment applicable: it applies to annual periods beginning on or after 1 January 2018 (IAS 40, para. 85G).","es":""}},{"id":"C","text":{"fr":"","en":"June 2017, the date of the building's change in use","es":""},"correct":false,"feedback":{"fr":"","en":"The date of initial application is the beginning of the period in which the entity first applies the amendment, not the date of an event (IAS 40, para. 84C).","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the carrying amount of the investment property at 1 January 2018 and the adjustment to opening retained earnings.","es":""},"explanation":{"fr":"","en":"At the date of initial application, Ostrane reassesses the classification of its property and reclassifies the building as investment property (IAS 40, para. 84C). It applies the transfer requirements reading the date of change in use as the date of initial application (IAS 40, para. 84E): a transfer from inventories to property measured at fair value gives rise to a difference that would go to profit or loss (IAS 40, para. 63), i.e. 3,400,000 − 3,000,000 = 400,000; that difference is recognised as an adjustment to opening retained earnings at 1 January 2018 (IAS 40, para. 84E). The amounts reclassified are disclosed in the reconciliation of carrying amounts (IAS 40, para. 84E).","es":""},"common_error":{"fr":"","en":"Recognising the 400,000 in 2018 profit or loss, as for an ordinary change in use, instead of in opening retained earnings.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount in inventories","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the date of initial application","es":""},"value":"3400000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Investment property at 1 January 2018","es":""},"answer":3400000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Adjustment to opening retained earnings","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Adjustment to opening retained earnings","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the date of initial application","es":""},"value":3400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount in inventories","es":""},"value":3000000,"unit":"EUR"}],"result":400000,"unit":"EUR","rationale":{"fr":"","en":"It applies the transfer requirements reading the date of change in use as the date of initial application (IAS 40, para. 84E): a transfer from inventories to property measured at fair value gives rise to a difference that would go to profit or loss (IAS 40, para. 63), i.e. 3,400,000 − 3,000,000 = 400,000","es":""}}],"references":["REF.IAS40.84C","REF.IAS40.84E","REF.IAS40.63"]}},{"prompt":{"fr":"","en":"Ostrane may apply the amendment retrospectively under IAS 8, going back to June 2017.","es":""},"explanation":{"fr":"","en":"False. Retrospective application under IAS 8 is permitted only if it is possible without the use of hindsight (IAS 40, para. 84D); Ostrane cannot reconstruct the facts without it (case data) and therefore applies the date of initial application approach (IAS 40, para. 84C).","es":""},"common_error":{"fr":"","en":"Believing retrospective application is always available, without checking the no-hindsight condition.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"How does Ostrane apply the initial measurement requirements for investment property acquired in an exchange to its 2018 land exchange?","es":""},"explanation":{"fr":"","en":"The requirements of paras. 27 to 29 on the initial measurement of investment property acquired in an exchange of assets apply prospectively, to future transactions only (IAS 40, para. 84): the 2018 exchange follows these requirements without restating earlier exchanges. Each transition provision is read on its own.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies them to this exchange, without restating earlier exchanges, as these requirements are prospective","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By also restating all its exchanges made before their first application","es":""},"correct":false,"feedback":{"fr":"","en":"The requirements on property acquired in an exchange apply prospectively to future transactions only (IAS 40, para. 84): earlier exchanges are not restated.","es":""}},{"id":"C","text":{"fr":"","en":"According to the date of initial application of the 2016 amendment","es":""},"correct":false,"feedback":{"fr":"","en":"The 2016 amendment deals with transfers (paras. 57-58); exchanges of assets have their own, prospective, transition provision (IAS 40, para. 84).","es":""}}],"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000001","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000001","tested_point":"QST.IAS40.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"understand"},"references":["IAS 40 §1"],"exercise":{"prompt":{"fr":"","en":"IAS 40 is intended, among other things, to prescribe the accounting treatment of property occupied by its owner.","es":""},"explanation":{"fr":"","en":"The objective of the standard is to prescribe the accounting treatment of investment property and the related disclosures (IAS 40, para. 1). Approach: identify the type of property the objective names. Trap: extending the objective to every property of the entity, whereas owner-occupied property is defined in contrast to investment property and falls under IAS 16. Rule to remember: IAS 40 deals with investment property and the related disclosures.","es":""},"common_error":{"fr":"","en":"Believing that IAS 40 covers every property of the entity, including those it occupies itself.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000002","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IFRS16_RIGHT_OF_USE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000002","tested_point":"QST.IAS40.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ifrs16"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Under the IAS 40 definition of investment property, who can hold an investment property?","es":""},"explanation":{"fr":"","en":"The definition of investment property covers property held to earn rentals or for capital appreciation, including through a right-of-use asset (IAS 40, para. 5): both the owner and a lessee holding a right-of-use asset may therefore be concerned. Approach: find the purpose of holding, then the way it is held (ownership or right-of-use asset). Trap: reserving the category to the owner alone. Rule to remember: A right-of-use asset held for rentals or capital appreciation can meet the definition of investment property.","es":""},"common_error":{"fr":"","en":"Reserving the investment property category to the owner of the property alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the owner of the property, never a lessee, even one holding a right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Too restrictive: the definition includes property held through a right-of-use asset (IAS 40, para. 5), so not only by the owner. Rule to remember: A right-of-use asset held for rentals or capital appreciation can meet the definition of investment property.","es":""}},{"id":"B","text":{"fr":"","en":"The owner, or a lessee holding a right-of-use asset, to earn rentals or for capital appreciation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only an entity whose main business is real estate, whatever the purpose of holding the property.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition does not depend on the entity's main business but on the purpose of holding the property (IAS 40, para. 5). Rule to remember: A right-of-use asset held for rentals or capital appreciation can meet the definition of investment property.","es":""}},{"id":"D","text":{"fr":"","en":"Any entity that occupies the property for its own production or administration.","es":""},"correct":false,"feedback":{"fr":"","en":"Property occupied for production or administration is owner-occupied property, not investment property: the purpose decides (IAS 40, para. 5). Rule to remember: A right-of-use asset held for rentals or capital appreciation can meet the definition of investment property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000003","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000003","tested_point":"QST.IAS40.000003","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"exclusions"},"references":["IAS 40 §4"],"exercise":{"prompt":{"fr":"","en":"An entity reviews its real-estate assets. Which of these items fall outside the scope of the standard on investment property? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"Two categories are excluded from the scope: biological assets (agricultural standard) and mineral rights and reserves, which fall under other standards (IAS 40, para. 4). Approach: for each item, ask whether it is one of these two categories. Trap: excluding an item because it is empty or land, when it may remain within the scope. Rule to remember: Biological assets and mineral rights and reserves are excluded from the scope of IAS 40.","es":""},"common_error":{"fr":"","en":"Excluding from the scope a piece of land or a vacant building because it produces no rentals today.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A building leased to a third party to earn rentals.","es":""},"correct":false,"feedback":{"fr":"","en":"A building leased for its rentals is not an exclusion from the scope: the exclusions concern biological assets and mineral rights and reserves (IAS 40). It is, on the contrary, a common case of investment property. Rule to remember: Biological assets and mineral rights and reserves are excluded from the scope of IAS 40.","es":""}},{"id":"B","text":{"fr":"","en":"Biological assets related to agricultural activity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Land held for long-term capital appreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Land held for appreciation is not excluded: the exclusions listed are biological assets and mineral rights and reserves (IAS 40). The trap is to confuse \"land\" with an agricultural asset. Rule to remember: Biological assets and mineral rights and reserves are excluded from the scope of IAS 40.","es":""}},{"id":"D","text":{"fr":"","en":"Mineral rights and mineral reserves.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A vacant building intended to be leased.","es":""},"correct":false,"feedback":{"fr":"","en":"A vacant building intended for lease is not excluded from the scope: only the listed exclusions (biological assets, mineral rights and reserves) are (IAS 40). Rule to remember: Biological assets and mineral rights and reserves are excluded from the scope of IAS 40.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000004","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000004","tested_point":"QST.IAS40.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-definition"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Which of these descriptions matches the definition of an investment property?","es":""},"explanation":{"fr":"","en":"An investment property is land or a building held to earn rentals or for capital appreciation, including through a right-of-use asset; owner-occupied property is held for use in the production or supply of goods or services, or for administration (IAS 40, para. 5). Approach: identify why the entity holds the property. Trap: relying on the mere recognition as an asset. Rule to remember: The purpose of holding (rentals or appreciation) distinguishes investment property from owner-occupied property.","es":""},"common_error":{"fr":"","en":"Defining investment property by its mere recognition as an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Land or a building held to earn rentals or for capital appreciation, including through a right-of-use asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Land or a building held for use in the production or supply of goods or services.","es":""},"correct":false,"feedback":{"fr":"","en":"This describes owner-occupied property (production or supply of goods or services), defined in contrast to investment property (IAS 40, para. 5). Use in the business rules out investment property classification. Rule to remember: The purpose of holding (rentals or appreciation) distinguishes investment property from owner-occupied property.","es":""}},{"id":"C","text":{"fr":"","en":"Land or a building held for the entity's own administrative purposes.","es":""},"correct":false,"feedback":{"fr":"","en":"Administrative use by the entity characterises owner-occupied property, not investment property (IAS 40, para. 5). Rentals or appreciation are what justify holding an investment property. Rule to remember: The purpose of holding (rentals or appreciation) distinguishes investment property from owner-occupied property.","es":""}},{"id":"D","text":{"fr":"","en":"Any land or building recorded as an asset in the statement of financial position, whatever the reason the entity holds it or the use it makes of it.","es":""},"correct":false,"feedback":{"fr":"","en":"Being recorded as an asset is not enough: the definition rests on the purpose of holding (rentals or appreciation) (IAS 40, para. 5). Owner-occupied or sale-intended property is also on the balance sheet without being investment property. Rule to remember: The purpose of holding (rentals or appreciation) distinguishes investment property from owner-occupied property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000005","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.INVESTMENT_PROPERTY"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000005","tested_point":"QST.IAS40.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-definition"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Four colleagues comment on the definition of investment property. Which of the following statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the definition. Investment property is land or a building held to earn rentals or for capital appreciation, including through a right-of-use asset (IAS 40, para. 5). The last three statements apply it; the first makes recognition as an asset a sufficient criterion, which is wrong. Trap: confusing an asset of the entity with an investment property. Rule to remember: A property is an investment property only through its purpose of holding (rentals or appreciation), not through mere recognition as an asset.","es":""},"common_error":{"fr":"","en":"Considering that every property on the balance sheet is an investment property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Land held for capital appreciation can be an investment property.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: land held for appreciation falls within the definition (IAS 40, para. 5). It is therefore not the one that contains the error. Rule to remember: A property is an investment property only through its purpose of holding (rentals or appreciation), not through mere recognition as an asset.","es":""}},{"id":"B","text":{"fr":"","en":"\"A building held through a right-of-use asset can meet the definition.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the definition covers property held, including through a right-of-use asset (IAS 40, para. 5). It is not the incorrect statement. Rule to remember: A property is an investment property only through its purpose of holding (rentals or appreciation), not through mere recognition as an asset.","es":""}},{"id":"C","text":{"fr":"","en":"\"A property is an investment property as soon as it is recorded as an asset, whatever the reason the entity holds it.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"A building held both to earn rentals and for capital appreciation can be an investment property, these two purposes being able to coexist.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the definition covers holding for rentals or for appreciation, and these purposes can coexist (IAS 40, para. 5). It is not the incorrect statement. Rule to remember: A property is an investment property only through its purpose of holding (rentals or appreciation), not through mere recognition as an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000006","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000006","tested_point":"QST.IAS40.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-terms"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"The standard treats \"carrying amount\" and \"fair value\" as a single defined term: both express the same notion.","es":""},"explanation":{"fr":"","en":"The standard defines its terms separately, including carrying amount and fair value (IAS 40, para. 5). Approach: find the defined terms and do not merge them. Trap: believing that a property is always recognised at fair value, which would remove any difference between the two notions. Rule to remember: Carrying amount and fair value are two distinct defined terms.","es":""},"common_error":{"fr":"","en":"Confusing carrying amount with fair value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000007","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000007","tested_point":"QST.IAS40.000007","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"rule-terms"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"In IAS 40, which description matches \"owner-occupied property\"?","es":""},"explanation":{"fr":"","en":"Owner-occupied property is property held for use in the production or supply of goods or services or for administrative purposes (IAS 40, para. 5). Approach: find the purpose of holding specific to this term. Trap: confusing it with investment property (rentals or appreciation) or with inventory. Rule to remember: Owner-occupied property is held for the production or supply of goods or services, or for administrative purposes.","es":""},"common_error":{"fr":"","en":"Calling \"owner-occupied\" every property the entity owns.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Property held to earn rentals from third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding property to earn rentals is the purpose of investment property, not of owner-occupied property (IAS 40, para. 5). The two terms are defined in contrast to each other. Rule to remember: Owner-occupied property is held for the production or supply of goods or services, or for administrative purposes.","es":""}},{"id":"B","text":{"fr":"","en":"Land held only for capital appreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding land for appreciation falls under the definition of investment property (IAS 40, para. 5). It is not a use in the owner's own business. Rule to remember: Owner-occupied property is held for the production or supply of goods or services, or for administrative purposes.","es":""}},{"id":"C","text":{"fr":"","en":"Property intended for sale in the ordinary course of the entity's business, after any fitting-out or refurbishment work.","es":""},"correct":false,"feedback":{"fr":"","en":"Property intended for ordinary sale is not described by the definition of owner-occupied property (IAS 40, para. 5): it falls into another category (inventory), distinct from both defined terms. Rule to remember: Owner-occupied property is held for the production or supply of goods or services, or for administrative purposes.","es":""}},{"id":"D","text":{"fr":"","en":"Property held by the owner for use in the production or supply of goods or services, or for administrative purposes.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000008","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_INCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000008","tested_point":"QST.IAS40.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §8"],"exercise":{"prompt":{"fr":"","en":"Which of these properties is an example of an investment property?","es":""},"explanation":{"fr":"","en":"Examples of investment property include land held for appreciation, a leased building and a vacant building intended for lease (IAS 40, para. 8). Approach: for each property, find the purpose of holding. Trap: choosing a property because it is real estate in the everyday sense. Rule to remember: Land held for appreciation, a leased building and a vacant building intended for lease are examples of investment property.","es":""},"common_error":{"fr":"","en":"Classifying any real estate as investment property without looking at the purpose.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A building in which the entity has its head-office premises.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's own head office is owner-occupied property: it is not among the examples of investment property (land for appreciation, leased building, vacant building intended for lease) (IAS 40, para. 8). Rule to remember: Land held for appreciation, a leased building and a vacant building intended for lease are examples of investment property.","es":""}},{"id":"B","text":{"fr":"","en":"A building under construction on behalf of a customer.","es":""},"correct":false,"feedback":{"fr":"","en":"A building constructed on behalf of a customer is held neither for rentals nor for appreciation: it is not among the examples of investment property (IAS 40, para. 8). Rule to remember: Land held for appreciation, a leased building and a vacant building intended for lease are examples of investment property.","es":""}},{"id":"C","text":{"fr":"","en":"Land held for long-term capital appreciation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Completed apartments the entity sells in the ordinary course of its business.","es":""},"correct":false,"feedback":{"fr":"","en":"Apartments intended for ordinary sale are held to be sold, not for rentals or appreciation: they are not among the examples of investment property (IAS 40, para. 8). Rule to remember: Land held for appreciation, a leased building and a vacant building intended for lease are examples of investment property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000009","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_INCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000009","tested_point":"QST.IAS40.000009","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §8"],"exercise":{"prompt":{"fr":"","en":"Which of these properties are examples of investment property? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"Examples of investment property include a leased building, land held for appreciation and a vacant building intended for lease (IAS 40, para. 8). Approach: keep the properties held for lease or appreciation. Trap: setting the vacant building aside because it produces no rentals for the moment. Rule to remember: A leased building, land held for appreciation and a vacant building intended for lease are investment properties.","es":""},"common_error":{"fr":"","en":"Excluding the vacant building intended for lease for lack of current rentals.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A building in which the entity sets up its own offices.","es":""},"correct":false,"feedback":{"fr":"","en":"A building for the entity's own offices is owner-occupied property, not an example of investment property (IAS 40, para. 8). Rule to remember: A leased building, land held for appreciation and a vacant building intended for lease are investment properties.","es":""}},{"id":"B","text":{"fr":"","en":"A building leased to a third party.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Land held for capital appreciation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Property intended for sale in the ordinary course of business.","es":""},"correct":false,"feedback":{"fr":"","en":"Property intended for ordinary sale is held to be sold, not for rentals or appreciation: it is not among the examples of investment property (IAS 40, para. 8). Rule to remember: A leased building, land held for appreciation and a vacant building intended for lease are investment properties.","es":""}},{"id":"E","text":{"fr":"","en":"A vacant building the entity intends to lease.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000010","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000010","tested_point":"QST.IAS40.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"A property held for sale in the ordinary course of business is an investment property.","es":""},"explanation":{"fr":"","en":"Among the examples of property that is not investment property is property intended for sale in the ordinary course of business (inventory) (IAS 40, para. 9). Approach: find the purpose of holding. Trap: calling investment property any real estate recorded as an asset. Rule to remember: Property intended for ordinary sale is inventory, not investment property.","es":""},"common_error":{"fr":"","en":"Classifying property intended for ordinary sale as investment property.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000011","standard_id":"IAS40","concept_ids":["IAS40.DEFINITION.EXAMPLES_EXCLUDED"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000011","tested_point":"QST.IAS40.000011","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000002","section_id":"examples"},"references":["IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"An entity comments on the classification of four properties. Which of these classifications is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: compare each classification with the purpose of holding and the exclusions: inventory intended for ordinary sale (including property under construction for sale), owner-occupied property (IAS 40, para. 9); a property leased out under a finance lease is no longer held by the lessor, which recognises a receivable (IFRS 16). The last three classifications are correct; the first contradicts them. Trap: reasoning on the physical nature of the property rather than on its purpose. Rule to remember: Property intended for ordinary sale (including under construction for sale) or owner-occupied is not investment property.","es":""},"common_error":{"fr":"","en":"Reasoning on the \"real estate\" nature of the property instead of the purpose of holding.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Completed apartments intended for ordinary sale: investment property, since they are real estate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A complex under construction to be sold in the ordinary course of business: inventory, excluded from investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"Correct classification: property under construction to be sold in the ordinary course of business is inventory, excluded from investment property (IAS 40). It is not the error. Rule to remember: Property intended for ordinary sale (including under construction for sale) or owner-occupied is not investment property.","es":""}},{"id":"C","text":{"fr":"","en":"The entity's administrative head office: owner-occupied property, not investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"Correct classification: owner-occupied property is excluded from investment property (IAS 40). It is not the error. Rule to remember: Property intended for ordinary sale (including under construction for sale) or owner-occupied is not investment property.","es":""}},{"id":"D","text":{"fr":"","en":"A property leased out to another entity under a finance lease: no longer investment property at the lessor, which recognises a receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"Correct classification: at the lessor, a property leased out under a finance lease gives rise to a receivable and is no longer held as investment property (IFRS 16). It is not the error. Rule to remember: Property intended for ordinary sale (including under construction for sale) or owner-occupied is not investment property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000012","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.DUAL_USE_SPLIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000012","tested_point":"QST.IAS40.000012","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-dual"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"A property is partly leased to third parties and partly occupied by the entity. Which condition leads to accounting separately for the leased part and the occupied part?","es":""},"explanation":{"fr":"","en":"For a mixed-use property, if the parts could be sold separately (or leased out separately under a finance lease), they are accounted for separately (IAS 40, para. 10). Approach: apply this separability test first, then, failing that, examine whether the occupied part is insignificant. Trap: reasoning on area or on the measurement model before applying the test. Rule to remember: If the parts of a mixed-use property could be sold separately (or leased out separately under a finance lease), they are accounted for separately.","es":""},"common_error":{"fr":"","en":"Setting an area percentage before applying the separation test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The part occupied by the entity exceeds half of the total area of the property.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not rest on an area fraction set at half: the test first concerns whether the parts could be sold separately (or leased out separately under a finance lease) (IAS 40, para. 10). Rule to remember: If the parts of a mixed-use property could be sold separately (or leased out separately under a finance lease), they are accounted for separately.","es":""}},{"id":"B","text":{"fr":"","en":"The entity decides freely in its accounting policy choice, with no other condition.","es":""},"correct":false,"feedback":{"fr":"","en":"Separate treatment is not a free choice: it follows from the ability to sell the parts separately (or lease them out separately under a finance lease) (IAS 40, para. 10). Rule to remember: If the parts of a mixed-use property could be sold separately (or leased out separately under a finance lease), they are accounted for separately.","es":""}},{"id":"C","text":{"fr":"","en":"The property is measured at fair value, which requires the two parts to be separated.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement model does not drive the separation of the parts: the ability to sell them separately (or lease them out separately under a finance lease) does (IAS 40, para. 10). Rule to remember: If the parts of a mixed-use property could be sold separately (or leased out separately under a finance lease), they are accounted for separately.","es":""}},{"id":"D","text":{"fr":"","en":"The parts could be sold separately or leased out separately under a finance lease.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000013","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.DUAL_USE_SPLIT"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000013","tested_point":"QST.IAS40.000013","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-dual"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"Altéa holds a tower in lot-based co-ownership: floors 1 to 6 are leased to third parties, floors 7 and 8 house its head office. Each floor has a separate title and could be sold on its own (case data). What is the classification?","es":""},"explanation":{"fr":"","en":"The floors could be sold separately (case data): the parts are therefore accounted for separately (IAS 40, para. 10). Floors 1 to 6, leased, are investment property; floors 7 and 8, occupied by the head office, are owner-occupied property. Approach: apply the separability test, then classify each part. Trap: classifying the whole on the basis of the majority part. Rule to remember: Parts that could be sold separately are each classified by their use: leased as investment property, occupied as owner-occupied property.","es":""},"common_error":{"fr":"","en":"Classifying the whole of a mixed-use property on the basis of its majority part.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classify the whole tower as investment property, because most floors are leased to third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"A majority of leased area does not waive the test: as the floors could be sold separately, they are accounted for separately (IAS 40, para. 10). Rule to remember: Parts that could be sold separately are each classified by their use: leased as investment property, occupied as owner-occupied property.","es":""}},{"id":"B","text":{"fr":"","en":"Account separately: floors 1 to 6 as investment property, floors 7 and 8 as owner-occupied property.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Classify the whole tower as owner-occupied property, because the entity occupies part of it.","es":""},"correct":false,"feedback":{"fr":"","en":"Occupying one part does not taint the leased floors: each part that could be sold separately is accounted for on its own (IAS 40, para. 10). Rule to remember: Parts that could be sold separately are each classified by their use: leased as investment property, occupied as owner-occupied property.","es":""}},{"id":"D","text":{"fr":"","en":"Classify the whole tower according to management's future intention, without distinguishing the floors.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention does not replace the separability test: the facts of the case (separate titles, sale possible floor by floor) call for separation (IAS 40, para. 10). Rule to remember: Parts that could be sold separately are each classified by their use: leased as investment property, occupied as owner-occupied property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000015","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000015","tested_point":"QST.IAS40.000015","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-insignificant"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"For a property whose parts cannot be sold separately, the standard sets at 5% of the area the threshold beyond which the occupied part is significant.","es":""},"explanation":{"fr":"","en":"If the parts cannot be sold separately or leased out separately under a finance lease, the property is an investment property only if the occupied part is insignificant (IAS 40, para. 10). The rule does not quantify this: it is a judgement based on the facts. Approach: assess the weight of the occupied part within the whole. Trap: presenting a case percentage (for example 5%) as a threshold of the standard. Rule to remember: Whether the occupied part is insignificant is a judgement based on the facts, with no numerical threshold in the rule.","es":""},"common_error":{"fr":"","en":"Presenting a single percentage as a threshold set by the standard.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000016","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000016","tested_point":"QST.IAS40.000016","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-insignificant"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"A management accountant comments on the classification of an indivisible property partly occupied by the entity. Which of the analyses is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: put each analysis back into the sequence of the rule. Parts that could be sold separately (or leased out separately under a finance lease): separate accounting; otherwise, the property is an investment property only if the occupied part is insignificant (IAS 40, para. 10). Only the first analysis invents a 10% threshold. Professional judgement: an area ratio is one element of the file, to be weighed against the other facts. Trap: turning case data into a rule. Rule to remember: The rule does not quantify the insignificant occupied part: it is assessed from the facts.","es":""},"common_error":{"fr":"","en":"Mechanically applying an area ratio as if it were in the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The threshold is 10% of the area: below it, the property is automatically an investment property.\"","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"\"As the parts cannot be sold separately, the property is an investment property only if the occupied part is insignificant.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct analysis: failing separability, the property is an investment property only if the occupied part is insignificant (IAS 40, para. 10). It is not the error. Rule to remember: The rule does not quantify the insignificant occupied part: it is assessed from the facts.","es":""}},{"id":"C","text":{"fr":"","en":"\"Whether the occupied part is insignificant is assessed from the facts specific to the property.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct analysis: insignificance is a judgement based on the facts, not on a threshold of the rule (IAS 40, para. 10). It is not the error. Rule to remember: The rule does not quantify the insignificant occupied part: it is assessed from the facts.","es":""}},{"id":"D","text":{"fr":"","en":"\"If the parts could be sold separately, they would be accounted for separately before any examination of that point.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct analysis: the separability test comes first; if it is met, the parts are accounted for separately (IAS 40, para. 10). It is not the error. Rule to remember: The rule does not quantify the insignificant occupied part: it is assessed from the facts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000017","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INSIGNIFICANT_PORTION"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000017","tested_point":"QST.IAS40.000017","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-insignificant"},"references":["IAS 40 §10"],"exercise":{"prompt":{"fr":"","en":"Brenmore owns a 6,000 m² office building that cannot be sold in parts. It occupies 150 m², that is 2.5% of the area (case data), for an archive room. The rest is leased to third parties. Which reasoning is most consistent with the rule?","es":""},"explanation":{"fr":"","en":"As the parts cannot be sold separately (case data), the property is an investment property only if the occupied part is insignificant (IAS 40, para. 10). Here, 2.5% of the area for archive use is an element to weigh against the other facts; the rule gives no threshold. Professional judgement: conclude and document the facts relied upon. Trap: invoking a percentage threshold as if it came from the standard. Rule to remember: Without separability, a property remains an investment property if the occupied part is judged insignificant from the facts.","es":""},"common_error":{"fr":"","en":"Quoting a numerical threshold from the standard that does not exist.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classify the whole as investment property, because 2.5% is below the 5% threshold set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no 5% threshold: that figure is made up here. The conclusion may be the same, but it rests on judgement, not on a threshold (IAS 40, para. 10). Rule to remember: Without separability, a property remains an investment property if the occupied part is judged insignificant from the facts.","es":""}},{"id":"B","text":{"fr":"","en":"Account separately for the 150 m² as owner-occupied property, because any occupation by the entity requires it.","es":""},"correct":false,"feedback":{"fr":"","en":"Separation is required only if the parts could be sold separately (or leased out separately under a finance lease), which is not the case here (IAS 40, para. 10); occupying one part is not enough to trigger it. Rule to remember: Without separability, a property remains an investment property if the occupied part is judged insignificant from the facts.","es":""}},{"id":"C","text":{"fr":"","en":"Classify the whole as investment property if, on the facts, the occupied part is judged insignificant; the area ratio informs that judgement without setting a threshold.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Classify the whole as owner-occupied property, because the entity occupies part of it.","es":""},"correct":false,"feedback":{"fr":"","en":"A minimal occupation does not tip the whole property over: failing separability, everything depends on whether the occupied part is insignificant (IAS 40, para. 10). Rule to remember: Without separability, a property remains an investment property if the occupied part is judged insignificant from the facts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000018","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.ANCILLARY_SERVICES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000018","tested_point":"QST.IAS40.000018","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-ancillary"},"references":["IAS 40 §11","IAS 40 §13"],"exercise":{"prompt":{"fr":"","en":"An owner leases a building and provides some services to the occupants. Which of these statements are correct? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"When services are provided to the occupants, the property remains an investment property if those services are a relatively insignificant component of the arrangement as a whole (IAS 40, para. 11). The assessment can be difficult (hotel management contracts, passive owner or operator): it is a judgement based on the facts (IAS 40, para. 13). Approach: weigh the services within the arrangement, then examine the owner's role. Trap: concluding from the existence of a service or of a management contract alone. Rule to remember: Relatively insignificant ancillary services do not change the classification; their weight is assessed by judgement from the facts.","es":""},"common_error":{"fr":"","en":"Concluding from the mere existence of a service or of a management contract.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If these services are a relatively insignificant component of the arrangement as a whole, the property remains an investment property.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As soon as the owner provides a service to the occupants, the property becomes owner-occupied property.","es":""},"correct":false,"feedback":{"fr":"","en":"A service provided to the occupants does not change the classification on its own: everything depends on its weight within the arrangement as a whole (IAS 40, para. 11). Rule to remember: Relatively insignificant ancillary services do not change the classification; their weight is assessed by judgement from the facts.","es":""}},{"id":"C","text":{"fr":"","en":"Assessing how significant the services are can be difficult and calls for judgement based on the facts.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A hotel management contract settles the classification on its own, with no further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"A management contract does not settle the classification on its own: the assessment is delicate and requires examining the facts, including the owner's role (IAS 40, para. 13). Rule to remember: Relatively insignificant ancillary services do not change the classification; their weight is assessed by judgement from the facts.","es":""}},{"id":"E","text":{"fr":"","en":"Whether the owner is a passive investor or an operator matters in the assessment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000019","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.ANCILLARY_SERVICES"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000019","tested_point":"QST.IAS40.000019","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"rule-ancillary"},"references":["IAS 40 §11"],"exercise":{"prompt":{"fr":"","en":"Calvera leases an office tower to third parties. It provides security and cleaning of the common areas, services that represent about 3% of the value of the lease arrangement (case assumption). Which classification is consistent with the rule?","es":""},"explanation":{"fr":"","en":"The services provided to the occupants (security, cleaning) weigh little in the lease arrangement (case assumption): they are a relatively insignificant component and the property remains an investment property (IAS 40, para. 11). Approach: place the services within the arrangement as a whole, then conclude. Professional judgement: the case percentage informs the assessment, it is not a threshold of the rule. Trap: concluding the property is owner-occupied as soon as a service exists. Rule to remember: Relatively insignificant ancillary services leave the property as an investment property.","es":""},"common_error":{"fr":"","en":"Concluding the property is owner-occupied as soon as services are provided.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Owner-occupied property, because the owner provides services to the occupants of the property.","es":""},"correct":false,"feedback":{"fr":"","en":"Providing services to the occupants is not enough to make the property owner-occupied: what counts is their weight within the arrangement as a whole (IAS 40, para. 11). Rule to remember: Relatively insignificant ancillary services leave the property as an investment property.","es":""}},{"id":"B","text":{"fr":"","en":"Inventory, because the services provided to the occupants resemble an ordinary commercial activity of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Security and cleaning do not turn the leased building into inventory: the ancillary services rule keeps the property as investment property when they are insignificant (IAS 40, para. 11). Rule to remember: Relatively insignificant ancillary services leave the property as an investment property.","es":""}},{"id":"C","text":{"fr":"","en":"Classification is impossible until a minimum percentage of services is set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not wait for a percentage to be set: it calls for a judgement on whether the services are relatively insignificant (IAS 40, para. 11). The 3% is a case assumption. Rule to remember: Relatively insignificant ancillary services leave the property as an investment property.","es":""}},{"id":"D","text":{"fr":"","en":"Investment property: the services provided to the occupants are a relatively insignificant component of the arrangement as a whole.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000021","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.JUDGEMENT_SIGNIFICANCE"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000021","tested_point":"QST.IAS40.000021","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"judgment-services"},"references":["IAS 40 §11","IAS 40 §13"],"exercise":{"prompt":{"fr":"","en":"An analyst comments on the classification of hotels under management contracts. Which of the analyst's statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. Relatively insignificant ancillary services leave the property as an investment property (IAS 40, para. 11); their assessment, difficult with hotel management contracts, rests on the facts (IAS 40, para. 13). Only the first statement makes a management contract an automatic criterion. Trap: replacing judgement with a contractual shortcut. Rule to remember: The classification of a hotel under a management contract results from a judgement based on the facts, not from the contract alone.","es":""},"common_error":{"fr":"","en":"Replacing judgement with the mere finding of a management contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Whether the services are significant is a judgement based on the facts.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the significance of the services is a judgement based on the facts (IAS 40, para. 13). It is not the error. Rule to remember: The classification of a hotel under a management contract results from a judgement based on the facts, not from the contract alone.","es":""}},{"id":"B","text":{"fr":"","en":"\"The property is automatically an investment property as soon as a third party manages the hotel, whatever the other facts.\"","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"\"The owner's role, passive investor or operator, enters the analysis.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the owner's role (passive or operator) is part of the analysis (IAS 40, para. 13). It is not the error. Rule to remember: The classification of a hotel under a management contract results from a judgement based on the facts, not from the contract alone.","es":""}},{"id":"D","text":{"fr":"","en":"\"The assessment is delicate in the case of hotel management contracts.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the assessment is difficult for these contracts, hence a judgement based on the facts (IAS 40, para. 13). It is not the error. Rule to remember: The classification of a hotel under a management contract results from a judgement based on the facts, not from the contract alone.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000023","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.CRITERIA_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000023","tested_point":"QST.IAS40.000023","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"criteria"},"references":["IAS 40 §14"],"exercise":{"prompt":{"fr":"","en":"When the classification of a property (investment property, owner-occupied property or inventory) is difficult, what must the entity do?","es":""},"explanation":{"fr":"","en":"When classification is difficult, the entity defines criteria to distinguish investment property, owner-occupied property and inventory, and discloses them (IAS 40, paras. 14 and 75(c)). Approach: formalise criteria before classifying borderline cases, then describe them in the notes. Trap: treating classification as a purely internal judgement without disclosure. Rule to remember: For a difficult classification, the entity defines distinguishing criteria and discloses them.","es":""},"common_error":{"fr":"","en":"Considering that the classification judgement does not have to be explained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Choose by default the category that gives the result most favourable to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Choosing the most favourable category is not a method: the rule asks for defined criteria, applied consistently and disclosed (IAS 40). Rule to remember: For a difficult classification, the entity defines distinguishing criteria and discloses them.","es":""}},{"id":"B","text":{"fr":"","en":"Define criteria to distinguish these categories and disclose them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Apply the previous year's criteria, without describing or updating them.","es":""},"correct":false,"feedback":{"fr":"","en":"Reusing criteria without describing them does not meet the rule: the criteria are defined and then disclosed (IAS 40). Rule to remember: For a difficult classification, the entity defines distinguishing criteria and discloses them.","es":""}},{"id":"D","text":{"fr":"","en":"Give no information at all, the classification being purely an internal judgement.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal judgement does not remove the need for information: the criteria used for difficult cases are disclosed (IAS 40). Rule to remember: For a difficult classification, the entity defines distinguishing criteria and discloses them.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000025","standard_id":"IAS40","concept_ids":["IAS40.CLASSIFICATION.INTRAGROUP_LEASE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000025","tested_point":"QST.IAS40.000025","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000003","section_id":"intragroup"},"references":["IAS 40 §15"],"exercise":{"prompt":{"fr":"","en":"Elmora, a subsidiary of the Norvane group, holds a building that it leases to another group company, Norvane Services, which carries on its business there. Which classification is consistent with the rule?","es":""},"explanation":{"fr":"","en":"Property leased to another group entity can be investment property in the lessor's separate financial statements without being so in the consolidated financial statements (IAS 40, para. 15). Here, Elmora leases it to Norvane Services: individually, Elmora holds the property for rentals; at group level, the property is used in the group's business. Approach: place yourself successively at the level of each set of accounts. Professional judgement: document the level of analysis adopted. Trap: carrying the separate classification over to the consolidated financial statements. Rule to remember: Property leased to another group entity can be investment property for the lessor without being so in the consolidated financial statements.","es":""},"common_error":{"fr":"","en":"Keeping in the consolidated financial statements the classification of the separate financial statements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Investment property in both the separate and the consolidated financial statements, the lease being with a legally distinct party.","es":""},"correct":false,"feedback":{"fr":"","en":"The intragroup lease does not change nature on consolidation: the property is used by the group, and the rule provides that it may not be investment property in the consolidated financial statements (IAS 40, para. 15). Rule to remember: Property leased to another group entity can be investment property for the lessor without being so in the consolidated financial statements.","es":""}},{"id":"B","text":{"fr":"","en":"Owner-occupied property in Elmora's separate financial statements, and investment property in the consolidated financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule goes the other way: the lessor may classify the property as investment property in its separate financial statements, and not in the consolidated ones (IAS 40, para. 15). Rule to remember: Property leased to another group entity can be investment property for the lessor without being so in the consolidated financial statements.","es":""}},{"id":"C","text":{"fr":"","en":"Investment property in the lessor Elmora's separate financial statements, but not in the group's consolidated financial statements.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Neither investment property nor owner-occupied property in either set of accounts, the lease being intragroup.","es":""},"correct":false,"feedback":{"fr":"","en":"The property must still fall into a category: investment property for the lessor in its separate financial statements, and outside investment property in the consolidated financial statements (IAS 40, para. 15). Rule to remember: Property leased to another group entity can be investment property for the lessor without being so in the consolidated financial statements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000026","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000026","tested_point":"QST.IAS40.000026","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-criteria"},"references":["IAS 40 §16"],"exercise":{"prompt":{"fr":"","en":"It is enough for the cost of an investment property to be measured reliably for it to be recognised as an asset.","es":""},"explanation":{"fr":"","en":"An investment property is recognised as an asset when it is probable that future economic benefits will flow to the entity and its cost can be measured reliably (IAS 40, para. 16). Approach: check both conditions together. Trap: stopping at the reliability of cost and forgetting the probability of future benefits. Rule to remember: Recognition requires that future economic benefits are probable and that cost is measured reliably.","es":""},"common_error":{"fr":"","en":"Checking only one of the two recognition conditions.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000027","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.CRITERIA"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000027","tested_point":"QST.IAS40.000027","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-criteria"},"references":["IAS 40 §16"],"exercise":{"prompt":{"fr":"","en":"An accountant reviews four situations against the recognition criteria for an investment property. Which of the conclusions is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: for each situation, check the two recognition conditions, probable future economic benefits and reliably measured cost (IAS 40, para. 16). Only the first conclusion makes do with one condition. Trap: believing that reliable cost offsets improbable future benefits. Rule to remember: Both recognition conditions must be met: probable future benefits and reliable cost.","es":""},"common_error":{"fr":"","en":"Recognising a cost before making sure both criteria are met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Cost is reliable but future benefits are improbable: the criterion is met and the property is recognised.\"","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"\"Future benefits are probable and cost is reliable: the property is recognised as an asset.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct conclusion: both conditions being met, the property is recognised as an asset (IAS 40, para. 16). It is not the error. Rule to remember: Both recognition conditions must be met: probable future benefits and reliable cost.","es":""}},{"id":"C","text":{"fr":"","en":"\"Future benefits are probable but cost cannot be measured reliably: the property is not recognised.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct conclusion: without a reliably measured cost, recognition is not possible (IAS 40, para. 16). It is not the error. Rule to remember: Both recognition conditions must be met: probable future benefits and reliable cost.","es":""}},{"id":"D","text":{"fr":"","en":"\"Both conditions must be met together to recognise the property as an asset.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct conclusion: the two conditions are assessed together (IAS 40, para. 16). It is not the error. Rule to remember: Both recognition conditions must be met: probable future benefits and reliable cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000028","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000028","tested_point":"QST.IAS40.000028","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-subsequent"},"references":["IAS 40 §18"],"exercise":{"prompt":{"fr":"","en":"The owner of an investment property spends 8,000 on day-to-day servicing (painting, minor repairs). How is this expenditure accounted for?","es":""},"explanation":{"fr":"","en":"The costs of day-to-day servicing of an investment property are not recognised in the carrying amount of the asset; they are recognised in profit or loss (IAS 40, para. 18). Here, the 8,000 expenditure is an expense of the period. Approach: distinguish day-to-day servicing from the replacement of a part. Trap: capitalising by principle any expenditure made on the property. Rule to remember: Day-to-day servicing of an investment property is an expense, not an asset.","es":""},"common_error":{"fr":"","en":"Capitalising day-to-day servicing costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an increase in the carrying amount of the investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"Capitalising day-to-day servicing is the typical error: these costs are not recognised in the asset but in profit or loss (IAS 40, para. 18). Rule to remember: Day-to-day servicing of an investment property is an expense, not an asset.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income, like a revaluation.","es":""},"correct":false,"feedback":{"fr":"","en":"A servicing cost is not a revaluation and does not go through other comprehensive income: it is recognised in profit or loss (IAS 40, para. 18). Rule to remember: Day-to-day servicing of an investment property is an expense, not an asset.","es":""}},{"id":"C","text":{"fr":"","en":"As inventory, until the property is next leased.","es":""},"correct":false,"feedback":{"fr":"","en":"A servicing cost is not inventory: day-to-day servicing is recognised in profit or loss (IAS 40, para. 18). Rule to remember: Day-to-day servicing of an investment property is an expense, not an asset.","es":""}},{"id":"D","text":{"fr":"","en":"As an expense of the period, in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000029","standard_id":"IAS40","concept_ids":["IAS40.RECOGNITION.SUBSEQUENT_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000029","tested_point":"QST.IAS40.000029","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000004","section_id":"rule-subsequent"},"references":["IAS 40 §18","IAS 40 §19"],"exercise":{"prompt":{"fr":"","en":"Which of the following expenditures on an investment property are recognised as an asset, the recognition criteria being met? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"Part replacement leads to recognising the cost of the new part as an asset if the criteria are met, and derecognising the carrying amount of the replaced part (IAS 40); day-to-day servicing goes to profit or loss (IAS 40, para. 18). Approach: classify each expenditure as part replacement or servicing. Trap: capitalising a recurring expenditure such as annual painting. Rule to remember: Part replacement is capitalised if the criteria are met; day-to-day servicing is an expense.","es":""},"common_error":{"fr":"","en":"Capitalising recurring servicing expenditure.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The day-to-day servicing costs of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing costs are not recognised in the carrying amount of the asset: they go to profit or loss (IAS 40, para. 18). Rule to remember: Part replacement is capitalised if the criteria are met; day-to-day servicing is an expense.","es":""}},{"id":"B","text":{"fr":"","en":"The replacement of a lift with new equipment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The annual painting of the common areas.","es":""},"correct":false,"feedback":{"fr":"","en":"Annual painting is day-to-day servicing: an expense in profit or loss, not an asset (IAS 40, para. 18). Rule to remember: Part replacement is capitalised if the criteria are met; day-to-day servicing is an expense.","es":""}},{"id":"D","text":{"fr":"","en":"The replacement of the central air-conditioning system with new equipment.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Minor plumbing repairs.","es":""},"correct":false,"feedback":{"fr":"","en":"Minor repairs are day-to-day servicing: an expense in profit or loss, not an asset (IAS 40, para. 18). Rule to remember: Part replacement is capitalised if the criteria are met; day-to-day servicing is an expense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000030","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000001","tested_point":"VG.IAS40.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"Falvik acquires an office building that it intends to lease. Purchase price: {purchase_price}. It also pays {transfer_taxes} of property transfer taxes and {legal_fees} of legal fees, directly attributable to the acquisition (case data). Calculate the initial cost of the investment property.","es":""},"explanation":{"fr":"","en":"Approach: an acquired investment property is initially measured at cost, which comprises the purchase price and directly attributable expenditure (legal fees, property transfer taxes, other transaction costs) (IAS 40, paras. 20 and 21). Initial cost = 1,200,000 + 84,000 + 16,000 = 1,300,000. Trap: stopping at the 1,200,000 purchase price and forgetting the taxes and fees. Rule to remember: The cost of an acquired investment property comprises the purchase price and directly attributable expenditure.","es":""},"common_error":{"fr":"","en":"Leaving the directly attributable taxes and fees out of the initial cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"1200000","unit":"EUR"},{"id":"transfer_taxes","value":"84000","unit":"EUR"},{"id":"legal_fees","value":"16000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase price","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Property transfer taxes","es":""},"value":"84000","unit":"EUR"},{"label":{"fr":"","en":"Legal fees","es":""},"value":"16000","unit":"EUR"}],"steps":[{"id":"INITIAL_COST","label":{"fr":"","en":"Initial cost of the property","es":""},"answer":1300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_COST","meaning":{"fr":"","en":"Initial cost of the property","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase price","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Property transfer taxes","es":""},"value":84000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Legal fees","es":""},"value":16000,"unit":"EUR"}],"result":1300000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cost of an acquired investment property comprises the purchase price and directly attributable expenditure.","es":""},"references":["REF.IAS40.20","REF.IAS40.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000031","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.COST_AT_RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000001","tested_point":"VG.IAS40.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"Gorvane buys a plot of land to hold for long-term capital appreciation. The contract sets the price at {land_price}. Gorvane also pays {notary_fees} of notary fees, {registration_duties} of registration duties and {agent_commission} of agency commission, all directly linked to this acquisition. At what cost is the land initially recognised?","es":""},"explanation":{"fr":"","en":"Approach: the land, held for appreciation, is an investment property initially measured at cost: purchase price plus directly attributable expenditure (IAS 40, paras. 20 and 21). Ancillary costs = 9,500 + 38,400 + 12,100 = 60,000; cost = 640,000 + 60,000 = 700,000. Trap: expensing these costs although they are directly attributable to the acquisition. Rule to remember: Expenditure directly attributable to the acquisition is added to the price to form the initial cost.","es":""},"common_error":{"fr":"","en":"Expensing costs that are directly attributable to the acquisition.","es":""},"format":"CALCULATION","placeholders":[{"id":"land_price","value":"640000","unit":"EUR"},{"id":"notary_fees","value":"9500","unit":"EUR"},{"id":"registration_duties","value":"38400","unit":"EUR"},{"id":"agent_commission","value":"12100","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Land price","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Notary fees","es":""},"value":"9500","unit":"EUR"},{"label":{"fr":"","en":"Registration duties","es":""},"value":"38400","unit":"EUR"},{"label":{"fr":"","en":"Agency commission","es":""},"value":"12100","unit":"EUR"}],"steps":[{"id":"INITIAL_COST","label":{"fr":"","en":"Initial cost of the land","es":""},"answer":700000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_COST","meaning":{"fr":"","en":"Initial cost of the land","es":""},"expression":"a + (b + c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Land price","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Notary fees","es":""},"value":9500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Registration duties","es":""},"value":38400,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Agency commission","es":""},"value":12100,"unit":"EUR"}],"result":700000,"unit":"EUR"}],"rationale":{"fr":"","en":"Expenditure directly attributable to the acquisition is added to the price to form the initial cost.","es":""},"references":["REF.IAS40.20","REF.IAS40.21"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS40.000033","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.TRANSACTION_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000033","tested_point":"QST.IAS40.000033","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"Legal fees directly linked to the acquisition of an investment property are recognised as an expense of the period.","es":""},"explanation":{"fr":"","en":"Initial measurement is at cost, transaction costs included (IAS 40, para. 20), and the cost of an acquired property comprises directly attributable legal fees (IAS 40, para. 21). Approach: identify the expenditure directly linked to the acquisition. Trap: expensing fees that form part of the initial cost. Rule to remember: Legal fees directly attributable to the acquisition form part of the cost of the property.","es":""},"common_error":{"fr":"","en":"Expensing legal fees directly linked to the acquisition.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000034","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.TRANSACTION_COSTS"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000034","tested_point":"QST.IAS40.000034","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"Ivora acquires a warehouse intended for lease for {purchase_price}. It incurs {legal_fees} of legal fees, {transfer_taxes} of property transfer taxes and {survey_fees} of technical survey fees specific to this warehouse, all directly attributable to the acquisition (case data). Calculate the total transaction costs included and the initial cost.","es":""},"explanation":{"fr":"","en":"Approach: the initial cost includes directly attributable transaction costs (IAS 40, paras. 20 and 21). Transaction costs = 28,000 + 175,000 + 22,000 = 225,000; initial cost = 3,500,000 + 225,000 = 3,725,000. Trap: keeping only the price and legal fees and leaving out taxes and survey fees. Rule to remember: All directly attributable transaction costs are added to the price in the initial cost.","es":""},"common_error":{"fr":"","en":"Leaving out part of the directly attributable transaction costs.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_price","value":"3500000","unit":"EUR"},{"id":"legal_fees","value":"28000","unit":"EUR"},{"id":"transfer_taxes","value":"175000","unit":"EUR"},{"id":"survey_fees","value":"22000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Purchase price","es":""},"value":"3500000","unit":"EUR"},{"label":{"fr":"","en":"Legal fees","es":""},"value":"28000","unit":"EUR"},{"label":{"fr":"","en":"Property transfer taxes","es":""},"value":"175000","unit":"EUR"},{"label":{"fr":"","en":"Technical survey fees","es":""},"value":"22000","unit":"EUR"}],"steps":[{"id":"INITIAL_COST","label":{"fr":"","en":"Initial cost of the warehouse","es":""},"answer":3725000,"tolerance":0,"unit":"EUR"},{"id":"TRANSACTION_COSTS","label":{"fr":"","en":"Transaction costs included in cost","es":""},"answer":225000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSACTION_COSTS","meaning":{"fr":"","en":"Transaction costs included in cost","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Legal fees","es":""},"value":28000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Property transfer taxes","es":""},"value":175000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Technical survey fees","es":""},"value":22000,"unit":"EUR"}],"result":225000,"unit":"EUR"}],"rationale":{"fr":"","en":"All directly attributable transaction costs are added to the price in the initial cost.","es":""},"references":["REF.IAS40.20","REF.IAS40.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000035","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.TRANSACTION_COSTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000035","tested_point":"QST.IAS40.000035","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-cost"},"references":["IAS 40 §20","IAS 40 §21"],"exercise":{"prompt":{"fr":"","en":"A finance director comments on the initial measurement of an acquired investment property. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the initial measurement rule. The property is measured at cost, transaction costs included (IAS 40, para. 20); cost comprises the price and directly attributable expenditure: legal fees, property transfer taxes, other transaction costs (IAS 40, para. 21). Only the first statement excludes the taxes. Trap: relying on who receives the payment rather than on the link with the acquisition. Rule to remember: Legal fees, property transfer taxes and other directly attributable costs form part of the initial cost.","es":""},"common_error":{"fr":"","en":"Excluding transfer taxes from cost because they are paid to the tax authority.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The cost of an acquired property comprises the purchase price and directly attributable expenditure.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: cost comprises the purchase price and directly attributable expenditure (IAS 40, para. 21). It is not the error. Rule to remember: Legal fees, property transfer taxes and other directly attributable costs form part of the initial cost.","es":""}},{"id":"B","text":{"fr":"","en":"\"Property transfer taxes are excluded from cost because they are paid to the tax authority and not to the seller.\"","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"\"Directly attributable legal fees are included in cost.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: directly attributable legal fees form part of cost (IAS 40, para. 21). It is not the error. Rule to remember: Legal fees, property transfer taxes and other directly attributable costs form part of the initial cost.","es":""}},{"id":"D","text":{"fr":"","en":"\"Initial measurement is at cost, transaction costs included.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: initial measurement is at cost, transaction costs included (IAS 40, para. 20). It is not the error. Rule to remember: Legal fees, property transfer taxes and other directly attributable costs form part of the initial cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000036","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCLUDED_COSTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000036","tested_point":"QST.IAS40.000036","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-excluded"},"references":["IAS 40 §23"],"exercise":{"prompt":{"fr":"","en":"An accounting manager states four rules on the costs of a new investment property. Which is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each rule against the list of items excluded from cost: start-up costs, initial operating losses before the planned occupancy level, abnormal waste of resources (IAS 40, para. 23). These items are not capitalised. Only the rule on initial operating losses includes them. Trap: capitalising initial losses because they relate to the new property. Rule to remember: Start-up costs, initial operating losses and abnormal waste are excluded from the initial cost.","es":""},"common_error":{"fr":"","en":"Capitalising initial operating losses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Start-up costs are excluded from the cost of the property.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: start-up costs are excluded from cost (IAS 40, para. 23). It is not the error. Rule to remember: Start-up costs, initial operating losses and abnormal waste are excluded from the initial cost.","es":""}},{"id":"B","text":{"fr":"","en":"\"Abnormal amounts of wasted materials, labour or other resources are excluded from cost.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: abnormal waste of resources is excluded from cost (IAS 40, para. 23). It is not the error. Rule to remember: Start-up costs, initial operating losses and abnormal waste are excluded from the initial cost.","es":""}},{"id":"C","text":{"fr":"","en":"\"Costs excluded from the initial cost are recognised as an expense of the period.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: items excluded from cost are not capitalised and go to expense (IAS 40, para. 23). It is not the error. Rule to remember: Start-up costs, initial operating losses and abnormal waste are excluded from the initial cost.","es":""}},{"id":"D","text":{"fr":"","en":"\"Initial operating losses before the planned occupancy level form part of cost.\"","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000037","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCLUDED_COSTS"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000037","tested_point":"QST.IAS40.000037","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-excluded"},"references":["IAS 40 §23"],"exercise":{"prompt":{"fr":"","en":"Jarmel incurred {total_costs} of expenditure to bring a new investment property into service. This total includes {start_up_costs} of start-up costs and {initial_losses} of operating losses incurred before the property reached the planned occupancy level. The remainder is directly attributable to the acquisition and construction (case assumption). Calculate the cost to be recognised as an asset.","es":""},"explanation":{"fr":"","en":"Approach: start-up costs and initial operating losses before the planned occupancy level are excluded from cost (IAS 40, para. 23). Capitalisable cost = 5,480,000 − 120,000 − 85,000 = 5,275,000; the 205,000 excluded goes to expense. Trap: capitalising the whole 5,480,000 incurred. Rule to remember: Start-up costs and initial operating losses are excluded from the capitalised cost.","es":""},"common_error":{"fr":"","en":"Capitalising total expenditure without excluding the non-capitalisable items.","es":""},"format":"CALCULATION","placeholders":[{"id":"total_costs","value":"5480000","unit":"EUR"},{"id":"start_up_costs","value":"120000","unit":"EUR"},{"id":"initial_losses","value":"85000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total expenditure incurred","es":""},"value":"5480000","unit":"EUR"},{"label":{"fr":"","en":"Start-up costs","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Initial operating losses","es":""},"value":"85000","unit":"EUR"}],"steps":[{"id":"CAPITALISABLE_COST","label":{"fr":"","en":"Cost to be recognised as an asset","es":""},"answer":5275000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CAPITALISABLE_COST","meaning":{"fr":"","en":"Cost to be recognised as an asset","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total expenditure incurred","es":""},"value":5480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Start-up costs","es":""},"value":120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Initial operating losses","es":""},"value":85000,"unit":"EUR"}],"result":5275000,"unit":"EUR"}],"rationale":{"fr":"","en":"Start-up costs and initial operating losses are excluded from the capitalised cost.","es":""},"references":["REF.IAS40.23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000039","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.DEFERRED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000039","tested_point":"QST.IAS40.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-deferred"},"references":["IAS 40 §24"],"exercise":{"prompt":{"fr":"","en":"An investment property is bought with settlement deferred by two years, beyond normal credit terms. How is the difference between total payments and the cash price equivalent accounted for?","es":""},"explanation":{"fr":"","en":"With deferred payment, the cost of the property is the cash price equivalent; the difference from total payments is recognised as interest expense over the period of credit (IAS 40, para. 24). Approach: determine the cash price equivalent, then spread the difference as interest. Trap: recognising the total deferred price as an asset. Rule to remember: With deferred payment, cost is the cash price equivalent and the difference is interest expense over the period of credit.","es":""},"common_error":{"fr":"","en":"Recognising the total deferred price without discounting.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an increase in the cost of the investment property, from acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"Including the difference in cost amounts to recognising the total deferred price: cost is the cash price equivalent (IAS 40), and the difference is interest expense. Rule to remember: With deferred payment, cost is the cash price equivalent and the difference is interest expense over the period of credit.","es":""}},{"id":"B","text":{"fr":"","en":"As finance income of the year of acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is not income: the buyer bears a financing cost, recognised as interest expense (IAS 40). Rule to remember: With deferred payment, cost is the cash price equivalent and the difference is interest expense over the period of credit.","es":""}},{"id":"C","text":{"fr":"","en":"As interest expense over the period of credit.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In a revaluation reserve, until the property is disposed of.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation reserve has no link with the deferral of payment: the difference is interest expense over the period of credit (IAS 40). Rule to remember: With deferred payment, cost is the cash price equivalent and the difference is interest expense over the period of credit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000040","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.DEFERRED_PAYMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000040","tested_point":"QST.IAS40.000040","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-deferred"},"references":["IAS 40 §24"],"exercise":{"prompt":{"fr":"","en":"Lormel acquires an investment property. It will settle {deferred_amount} in two years, with no interim payment. The annual discount rate reflecting the credit granted is {rate} (case data). Calculate the cash price equivalent and the total interest to be expensed over the period.","es":""},"explanation":{"fr":"","en":"Approach: cost is the cash price equivalent, the difference being interest expense over the period of credit (IAS 40, para. 24). Cash price equivalent = 1,210,000 / 1.10² = 1,000,000. Interest = 1,210,000 − 1,000,000 = 210,000, spread over the two years. Trap: recognising 1,210,000 as an asset. Rule to remember: Cost is the discounted price; the difference from the amount paid is interest expense over the period of credit.","es":""},"common_error":{"fr":"","en":"Recognising the total amount payable as an asset without discounting it.","es":""},"format":"CALCULATION","placeholders":[{"id":"deferred_amount","value":"1210000","unit":"EUR"},{"id":"rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Amount payable at term","es":""},"value":"1210000","unit":"EUR"},{"label":{"fr":"","en":"Annual discount rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"CASH_PRICE_EQUIVALENT","label":{"fr":"","en":"Cash price equivalent","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_INTEREST","label":{"fr":"","en":"Total interest expense","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CASH_PRICE_EQUIVALENT","meaning":{"fr":"","en":"Cash price equivalent","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable at term","es":""},"value":1210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual discount rate","es":""},"value":10,"unit":"PERCENT"}],"result":1000000,"unit":"EUR"},{"step":"TOTAL_INTEREST","meaning":{"fr":"","en":"Total interest expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable at term","es":""},"value":1210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cash price equivalent","es":""},"value":1000000,"unit":"EUR"}],"result":210000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cost is the discounted price; the difference from the amount paid is interest expense over the period of credit.","es":""},"references":["REF.IAS40.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000042","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.LEASED_PROPERTY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000042","tested_point":"QST.IAS40.000042","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-leased"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"The initial measurement of a right-of-use asset held as investment property remains governed by the original wording of IAS 40 on finance leases under IAS 17.","es":""},"explanation":{"fr":"","en":"For a right-of-use asset held as investment property, the initial measurement of the right follows IFRS 16; the original IAS 40 wording on finance leases (IAS 17) is obsolete (IFRS 16; IAS 40, para. 5). Approach: ask which standard measures the right on entry. Trap: applying superseded terminology. Rule to remember: The initial measurement of a right-of-use asset held as investment property follows IFRS 16.","es":""},"common_error":{"fr":"","en":"Applying the original wording (finance leases) instead of the IFRS 16 right-of-use asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000043","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.LEASED_PROPERTY"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000043","tested_point":"QST.IAS40.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-leased"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Nerval leases a floor of a building for ten years and sub-leases it to third parties to earn rentals. The right-of-use asset meets the definition of investment property (case assumption). Which initial treatment is consistent?","es":""},"explanation":{"fr":"","en":"A right-of-use asset held as investment property falls within IAS 40; its initial measurement follows IFRS 16, the original wording on finance leases being obsolete (IFRS 16; IAS 40, para. 5). Approach: check that the right meets the definition of investment property (case assumption), then apply IFRS 16 on entry. Trap: treating rent as a simple expense. Rule to remember: A right-of-use asset held as investment property is recognised as an asset and initially measured under IFRS 16.","es":""},"common_error":{"fr":"","en":"Ignoring the right-of-use asset and recognising only rent as an expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the right-of-use asset as investment property, its initial measurement following IFRS 16.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognise nothing as an asset: IAS 40 never applies to leased property.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 40 also applies to right-of-use assets held as investment property: setting them aside is incorrect (IAS 40). Rule to remember: A right-of-use asset held as investment property is recognised as an asset and initially measured under IFRS 16.","es":""}},{"id":"C","text":{"fr":"","en":"Apply the original wording on finance leases under IAS 17 to measure the right.","es":""},"correct":false,"feedback":{"fr":"","en":"The original wording on finance leases is obsolete: the initial measurement of the right follows IFRS 16 (IFRS 16; IAS 40, para. 5). Rule to remember: A right-of-use asset held as investment property is recognised as an asset and initially measured under IFRS 16.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise rent paid as an expense and sub-lease income as revenue, with no asset or liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This presentation ignores the right-of-use asset: a right held as investment property is recognised as an asset, initially measured under IFRS 16 (IFRS 16; IAS 40, para. 5). Rule to remember: A right-of-use asset held as investment property is recognised as an asset and initially measured under IFRS 16.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000044","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.LEASED_PROPERTY"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000044","tested_point":"QST.IAS40.000044","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-leased"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Orvane leases a floor for two years: rent of {payment_year_1} at the end of the first year and {payment_year_2} at the end of the second. The annual discount rate is {rate} (case data). For teaching simplicity, assume no other payment (no variable rent, no initial direct costs). Calculate the present value of the rents, the basis for the initial measurement of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"Approach: the initial measurement of a right-of-use asset held as investment property falls under IFRS 16 (IAS 40, para. 5; IFRS 16); here, the rents given are discounted. Present value = 11,000 / 1.10 + 12,100 / 1.10² = 10,000 + 10,000 = 20,000. Teaching assumption: no other cash flow. Trap: adding the undiscounted rents (23,100). Rule to remember: The present value of the remaining rents is the basis for the initial measurement of the right-of-use asset.","es":""},"common_error":{"fr":"","en":"Adding the rents without discounting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"payment_year_1","value":"11000","unit":"EUR"},{"id":"payment_year_2","value":"12100","unit":"EUR"},{"id":"rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Rent at end of the first year","es":""},"value":"11000","unit":"EUR"},{"label":{"fr":"","en":"Rent at end of the second year","es":""},"value":"12100","unit":"EUR"},{"label":{"fr":"","en":"Annual discount rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"PRESENT_VALUE","label":{"fr":"","en":"Present value of the rents","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Present value of the rents","es":""},"expression":"a / (1 + b) + c / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rent at end of the first year","es":""},"value":11000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual discount rate","es":""},"value":10,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Rent at end of the second year","es":""},"value":12100,"unit":"EUR"}],"result":20000,"unit":"EUR"}],"rationale":{"fr":"","en":"The present value of the remaining rents is the basis for the initial measurement of the right-of-use asset.","es":""},"references":["REF.IAS40.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000045","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000045","tested_point":"QST.IAS40.000045","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-exchange"},"references":["IAS 40 §27","IAS 40 §28"],"exercise":{"prompt":{"fr":"","en":"An investment property acquired in exchange for another asset is measured at the carrying amount of the asset given up, even when the exchange has commercial substance and the fair value of the asset given up is reliably measurable.","es":""},"explanation":{"fr":"","en":"A property acquired by exchange is measured at cost on the same logic as IAS 16, with a commercial substance test (IAS 40, paras. 27 and 28); the carrying amount of the asset given up is only a fallback value where there is no commercial substance (IAS 40, para. 27). Approach: apply the commercial substance test first. Trap: automatically using the carrying amount of the asset given up. Rule to remember: The carrying amount of the asset given up is only a fallback, where there is no commercial substance.","es":""},"common_error":{"fr":"","en":"Automatically using the carrying amount of the asset given up.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000046","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCHANGE"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000046","tested_point":"QST.IAS40.000046","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-exchange"},"references":["IAS 40 §27","IAS 40 §28"],"exercise":{"prompt":{"fr":"","en":"Marvel exchanges a plot of land (carrying amount {carrying_amount_given_up}, fair value {fair_value_given_up}) for a building to be leased, and pays an additional {cash_paid} in cash. The exchange has commercial substance (case data). Calculate the cost of the investment property acquired.","es":""},"explanation":{"fr":"","en":"Approach: as the exchange has commercial substance, cost follows the IAS 16 logic (IAS 40, para. 27): fair value of the asset given up plus cash paid, that is 900,000 + 100,000 = 1,000,000. The carrying amount of 600,000 is only a fallback for an exchange without commercial substance (IAS 40, para. 27); here it is a datum not used. Trap: using 600,000 + 100,000. Rule to remember: With commercial substance, cost is the fair value of the asset given up, adjusted for cash paid.","es":""},"common_error":{"fr":"","en":"Starting from the carrying amount of the asset given up although the exchange has commercial substance.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_given_up","value":"900000","unit":"EUR"},{"id":"cash_paid","value":"100000","unit":"EUR"},{"id":"carrying_amount_given_up","value":"600000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the land given up","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Cash paid","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the land given up","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"COST_OF_PROPERTY","label":{"fr":"","en":"Cost of the investment property","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COST_OF_PROPERTY","meaning":{"fr":"","en":"Cost of the investment property","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the land given up","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cash paid","es":""},"value":100000,"unit":"EUR"}],"result":1000000,"unit":"EUR","rationale":{"fr":"","en":"Approach: as the exchange has commercial substance, cost follows the IAS 16 logic (IAS 40, para. 27): fair value of the asset given up plus cash paid, that is 900,000 + 100,000 = 1,000,000.","es":""}}],"rationale":{"fr":"","en":"With commercial substance, cost is the fair value of the asset given up, adjusted for cash paid.","es":""},"references":["REF.IAS40.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000047","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCHANGE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000047","tested_point":"QST.IAS40.000047","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-exchange"},"references":["IAS 40 §27","IAS 40 §28"],"exercise":{"prompt":{"fr":"","en":"Pivane exchanges an owner-occupied building (carrying amount 750,000, fair value 820,000) for an investment property. The expected cash flows are not changed: the exchange lacks commercial substance (case data). No cash is paid. At what amount is the property acquired recognised?","es":""},"explanation":{"fr":"","en":"The cost of a property acquired by exchange follows the IAS 16 logic, with a commercial substance test (IAS 40, paras. 27 and 28). For lack of commercial substance (case data), the fallback value applies, that is the carrying amount of the asset given up, 750,000 (IAS 40, para. 27), with no cash. Approach: test commercial substance, then choose the basis. Trap: using the 820,000 fair value by reflex. Rule to remember: Without commercial substance, a property acquired by exchange is measured at the carrying amount of the asset given up.","es":""},"common_error":{"fr":"","en":"Using the fair value of the asset given up for an exchange without commercial substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"820,000, the fair value of the asset given up, as for an exchange with commercial substance.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of 820,000 is the basis for an exchange with commercial substance (IAS 40, para. 27); here, for lack of commercial substance, the fallback value of 750,000 applies (IAS 40, para. 27). Rule to remember: Without commercial substance, a property acquired by exchange is measured at the carrying amount of the asset given up.","es":""}},{"id":"B","text":{"fr":"","en":"750,000, the carrying amount of the asset given up, for lack of commercial substance.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"70,000, the difference between fair value and carrying amount of the asset given up.","es":""},"correct":false,"feedback":{"fr":"","en":"70,000 is a difference in value, not the cost of the property: the fallback cost is the carrying amount of the asset given up, that is 750,000 (IAS 40, para. 27). Rule to remember: Without commercial substance, a property acquired by exchange is measured at the carrying amount of the asset given up.","es":""}},{"id":"D","text":{"fr":"","en":"0, an exchange without commercial substance giving rise to no recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"An exchange without commercial substance does give rise to recognition of the property acquired: it is recognised at the fallback value of 750,000 (IAS 40, para. 27). Rule to remember: Without commercial substance, a property acquired by exchange is measured at the carrying amount of the asset given up.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000048","standard_id":"IAS40","concept_ids":["IAS40.POLICY.MODEL_CHOICE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000048","tested_point":"QST.IAS40.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-choice"},"references":["IAS 40 §30"],"exercise":{"prompt":{"fr":"","en":"Quorix holds twelve investment properties. Management wishes to measure eight under the fair value model and four under the cost model, property by property according to its preferences. Is this approach consistent with the accounting policy choice?","es":""},"explanation":{"fr":"","en":"The choice of accounting policy, fair value model or cost model, is applied to all investment property (IAS 40, para. 30). A portfolio measured eight under the fair value model and four under the cost model according to preferences is therefore not consistent. Approach: adopt a single policy for the whole. Professional judgement: document the model chosen. Trap: arbitrating property by property. Rule to remember: The model chosen, fair value or cost, applies to all of the entity's investment property.","es":""},"common_error":{"fr":"","en":"Applying a different model property by property without justification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the choice of model is made property by property, freely.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of model is not free property by property: the model chosen applies to all investment property (IAS 40, para. 30). Rule to remember: The model chosen, fair value or cost, applies to all of the entity's investment property.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, provided the properties measured at cost are the oldest in the portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The age of a property does not open a separate choice: the model chosen applies to all investment property (IAS 40, para. 30). Rule to remember: The model chosen, fair value or cost, applies to all of the entity's investment property.","es":""}},{"id":"C","text":{"fr":"","en":"No: the model chosen applies to all of the entity's investment property.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, if management justifies each choice in an annual note.","es":""},"correct":false,"feedback":{"fr":"","en":"An annual justification does not replace the rule: the model chosen applies to all investment property, whatever the motivation (IAS 40, para. 30). Rule to remember: The model chosen, fair value or cost, applies to all of the entity's investment property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000049","standard_id":"IAS40","concept_ids":["IAS40.POLICY.CHANGE_IN_POLICY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000049","tested_point":"QST.IAS40.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-change"},"references":["IAS 40 §31"],"exercise":{"prompt":{"fr":"","en":"Which statement is correct about a change in the measurement model for investment property?","es":""},"explanation":{"fr":"","en":"A change in accounting policy is allowed only if it results in a more relevant presentation; a move from the fair value model to the cost model is presented as unlikely to meet this condition (IAS 40, para. 31). Approach: ask whether the information becomes more relevant. Professional judgement: justify that relevance. Trap: changing model for profit reasons. Rule to remember: A change of model is allowed only if it results in a more relevant presentation.","es":""},"common_error":{"fr":"","en":"Moving from fair value to cost without any relevance justification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A change is allowed only if it results in a more relevant presentation; moving from fair value to cost is presented as unlikely to do so.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A change can be made at any time by simple management decision.","es":""},"correct":false,"feedback":{"fr":"","en":"Management cannot change the model freely: the condition is a more relevant presentation (IAS 40, para. 31). Rule to remember: A change of model is allowed only if it results in a more relevant presentation.","es":""}},{"id":"C","text":{"fr":"","en":"A change is possible only at the start of a reporting period, whatever its relevance.","es":""},"correct":false,"feedback":{"fr":"","en":"The start date of a period does not replace the relevance condition: the change must result in a more relevant presentation (IAS 40, para. 31). Rule to remember: A change of model is allowed only if it results in a more relevant presentation.","es":""}},{"id":"D","text":{"fr":"","en":"A change is always prohibited, the model chosen being final for the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"A change is not prohibited in all circumstances: it is allowed if it results in a more relevant presentation (IAS 40, para. 31). Rule to remember: A change of model is allowed only if it results in a more relevant presentation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000050","standard_id":"IAS40","concept_ids":["IAS40.POLICY.LINKED_LIABILITIES_POOLS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000050","tested_point":"QST.IAS40.000050","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000006","section_id":"rule-linked"},"references":["IAS 40 §32A"],"exercise":{"prompt":{"fr":"","en":"An entity that applies the cost model to the property backing liabilities whose return is linked to that property's fair value must also apply the cost model to all its other investment property.","es":""},"explanation":{"fr":"","en":"The category option allows one model to be chosen for all property backing such liabilities and, regardless of that first choice, a model for all other investment property (IAS 40, para. 32A). The other property may therefore follow the fair value model. Approach: separate the two categories and the choice made for each. Trap: thinking that the choice made for the backing category binds the rest of the portfolio. Rule to remember: Each category (backing property, other property) has its own choice of model.","es":""},"common_error":{"fr":"","en":"Applying to the other property the model chosen for the backing property.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000051","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000051","tested_point":"QST.IAS40.000051","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"An entity applies the fair value model. How is an investment property measured after initial recognition?","es":""},"explanation":{"fr":"","en":"Under the fair value model, an investment property is measured at fair value after initial recognition, without depreciation (IAS 40, para. 33). Approach: identify the model chosen, then apply its measurement basis. Trap: mixing fair value with the depreciation charge of the cost model. Rule to remember: Under the fair value model, investment property is measured at fair value, without depreciation.","es":""},"common_error":{"fr":"","en":"Depreciating a property measured at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At cost less accumulated depreciation and impairment losses, like an owner-occupied asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This describes the cost model: depreciation and impairment. The fair value model measures the property at fair value, without depreciation (IAS 40, para. 33). Rule to remember: Under the fair value model, investment property is measured at fair value, without depreciation.","es":""}},{"id":"B","text":{"fr":"","en":"At original cost, fair value being required only when the property is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Original cost does not remain the basis under the fair value model: the property is measured at fair value at each reporting date, not only on sale (IAS 40, para. 33). Rule to remember: Under the fair value model, investment property is measured at fair value, without depreciation.","es":""}},{"id":"C","text":{"fr":"","en":"At fair value, but depreciating the property over its expected useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciating a property measured at fair value is the typical error: the fair value model applies without depreciation (IAS 40, para. 33). Rule to remember: Under the fair value model, investment property is measured at fair value, without depreciation.","es":""}},{"id":"D","text":{"fr":"","en":"At fair value at each reporting date, without depreciation.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000053","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.MEASURE_AT_FV","IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000053","tested_point":"QST.IAS40.000053","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"Sorel measures its investment property portfolio at fair value. Opening carrying amount: {opening_carrying_amount}. During the period, it acquires a property for {acquisitions} and sells another whose carrying amount was {disposals_at_carrying_amount}. The fair value of the portfolio at the reporting date is {closing_fair_value}. Calculate the fair value gain for the period.","es":""},"explanation":{"fr":"","en":"Approach: the change in fair value is closing fair value less the opening amount adjusted for movements (IAS 40, para. 33); it is recognised in profit or loss (IAS 40, para. 35). Adjusted amount = 8,000,000 + 1,500,000 − 600,000 = 8,900,000; gain = 9,400,000 − 8,900,000 = 500,000. Trap: comparing closing to opening alone, which would give 1,400,000. Rule to remember: The change in fair value is closing fair value less the opening amount adjusted for acquisitions and disposals.","es":""},"common_error":{"fr":"","en":"Calculating the change without taking the period's acquisitions and disposals into account.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"8000000","unit":"EUR"},{"id":"acquisitions","value":"1500000","unit":"EUR"},{"id":"disposals_at_carrying_amount","value":"600000","unit":"EUR"},{"id":"closing_fair_value","value":"9400000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"8000000","unit":"EUR"},{"label":{"fr":"","en":"Acquisitions in the period","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Disposals at carrying amount","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Closing fair value","es":""},"value":"9400000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE_GAIN","label":{"fr":"","en":"Fair value gain for the period","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE_GAIN","meaning":{"fr":"","en":"Fair value gain for the period","es":""},"expression":"a - (b + c - d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value","es":""},"value":9400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":8000000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Acquisitions in the period","es":""},"value":1500000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Disposals at carrying amount","es":""},"value":600000,"unit":"EUR"}],"result":500000,"unit":"EUR"}],"rationale":{"fr":"","en":"The change in fair value is closing fair value less the opening amount adjusted for acquisitions and disposals.","es":""},"references":["REF.IAS40.33","REF.IAS40.35"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000054","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000002","tested_point":"VG.IAS40.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"Tarvan applies the fair value model. Its investment properties were carried at {opening_carrying_amount} at the start of the period. It acquired a new one during the period for {acquisition_cost}. The fair value of the whole at the reporting date is {closing_fair_value}. What amount is recognised in profit or loss for the change in fair value?","es":""},"explanation":{"fr":"","en":"Approach: the change in fair value is recognised in profit or loss of the period in which it arises (IAS 40, para. 35). It is calculated by isolating the effect of the acquisition: 7,450,000 − (6,400,000 + 800,000) = 250,000. Trap: using 1,050,000 (closing less opening), which includes the cost of the new property and not a change in value. Rule to remember: Only the change in fair value, excluding acquisitions, is recognised in profit or loss of the period.","es":""},"common_error":{"fr":"","en":"Taking the whole increase of the portfolio, acquisitions included, as fair value gain.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"6400000","unit":"EUR"},{"id":"acquisition_cost","value":"800000","unit":"EUR"},{"id":"closing_fair_value","value":"7450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"6400000","unit":"EUR"},{"label":{"fr":"","en":"Cost of the property acquired","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Closing fair value","es":""},"value":"7450000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE_GAIN","label":{"fr":"","en":"Fair value gain recognised in profit or loss","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE_GAIN","meaning":{"fr":"","en":"Fair value gain recognised in profit or loss","es":""},"expression":"a - (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value","es":""},"value":7450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":6400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cost of the property acquired","es":""},"value":800000,"unit":"EUR"}],"result":250000,"unit":"EUR"}],"rationale":{"fr":"","en":"Only the change in fair value, excluding acquisitions, is recognised in profit or loss of the period.","es":""},"references":["REF.IAS40.35"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000055","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.GAINS_LOSSES_PL"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000002","tested_point":"VG.IAS40.000002","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-measure"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the only investment property of Ulmane, measured at fair value, is worth {closing_fair_value} whereas it was carried at {opening_carrying_amount} a year earlier. There was no expenditure or disposal on it. What fair value loss does Ulmane recognise in profit or loss?","es":""},"explanation":{"fr":"","en":"Approach: under the fair value model, a decrease in value is recognised in profit or loss of the period in which it arises, like an increase (IAS 40, para. 35), without depreciation (IAS 40, para. 33). Loss = 5,000,000 − 4,560,000 = 440,000. Trap: charging the decrease to a revaluation reserve or spreading it like depreciation. Rule to remember: A decrease in fair value is recognised in profit or loss, like an increase, in the period in which it arises.","es":""},"common_error":{"fr":"","en":"Spreading the decrease in value like depreciation.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_carrying_amount","value":"5000000","unit":"EUR"},{"id":"closing_fair_value","value":"4560000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening carrying amount","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Closing fair value","es":""},"value":"4560000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE_LOSS","label":{"fr":"","en":"Fair value loss recognised in profit or loss","es":""},"answer":440000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE_LOSS","meaning":{"fr":"","en":"Fair value loss recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening carrying amount","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing fair value","es":""},"value":4560000,"unit":"EUR"}],"result":440000,"unit":"EUR"}],"rationale":{"fr":"","en":"A decrease in fair value is recognised in profit or loss, like an increase, in the period in which it arises.","es":""},"references":["REF.IAS40.33","REF.IAS40.35"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS40.000057","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.FAIR_VALUE_DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000057","tested_point":"QST.IAS40.000057","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-fv"},"references":["IAS 40 §33","IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Under IAS 40, what does the fair value of an investment property reflect at the reporting date?","es":""},"explanation":{"fr":"","en":"Fair value reflects market conditions at the reporting date and not an entity-specific value (IFRS 13); it is determined under IFRS 13 (IAS 40, paras. 5 and 33). Approach: take the market's viewpoint at the reporting date. Trap: using a value that depends on the entity's particular situation. Rule to remember: The fair value of an investment property reflects the market at the reporting date, not an entity-specific value.","es":""},"common_error":{"fr":"","en":"Using an entity-specific value in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity-specific value in use, with the synergies only the entity can obtain.","es":""},"correct":false,"feedback":{"fr":"","en":"An entity-specific value in use, with its particular synergies, is precisely what fair value does not reflect: it rests on the market at the reporting date (IFRS 13). Rule to remember: The fair value of an investment property reflects the market at the reporting date, not an entity-specific value.","es":""}},{"id":"B","text":{"fr":"","en":"Original cost increased by an inflation rate set by management.","es":""},"correct":false,"feedback":{"fr":"","en":"Indexed cost is not a fair value: fair value reflects market conditions at the reporting date (IFRS 13). Rule to remember: The fair value of an investment property reflects the market at the reporting date, not an entity-specific value.","es":""}},{"id":"C","text":{"fr":"","en":"The price management would like to obtain on a future sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's expectation is not a market condition: fair value reflects the market at the reporting date, not a desired price (IFRS 13). Rule to remember: The fair value of an investment property reflects the market at the reporting date, not an entity-specific value.","es":""}},{"id":"D","text":{"fr":"","en":"Market conditions at the reporting date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000059","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.IFRS13_LINK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000059","tested_point":"QST.IAS40.000059","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-fv"},"references":["IAS 40 §5","IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"IAS 40 contains its own complete set of rules to determine the fair value of an investment property, with no reference to another standard.","es":""},"explanation":{"fr":"","en":"The fair value of an investment property is determined under IFRS 13 (IAS 40, paras. 5 and 33): IAS 40 refers to it instead of duplicating its rules. Approach: ask which standard frames the determination of fair value. Trap: applying fair value rules specific to IAS 40. Rule to remember: The fair value of an investment property is determined under IFRS 13.","es":""},"common_error":{"fr":"","en":"Applying specific fair value rules without reference to IFRS 13.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000060","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.IFRS13_LINK"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000060","tested_point":"QST.IAS40.000060","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-fv"},"references":["IAS 40 §33","IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"Xalme's accounting department must determine the fair value of an investment property measured under the fair value model, and hesitates between four frameworks. Which one frames this determination?","es":""},"explanation":{"fr":"","en":"The fair value of an investment property is determined under IFRS 13 (IAS 40, paras. 5 and 33) and reflects market conditions at the reporting date, not an entity-specific value (IFRS 13). Approach: set aside the frameworks based on internal use (value in use) or on another accounting model. Trap: choosing a familiar framework unrelated to market fair value. Rule to remember: The fair value of an investment property is determined under IFRS 13, on the basis of the market at the reporting date.","es":""},"common_error":{"fr":"","en":"Confusing fair value, value in use and the IAS 16 revaluation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An internal scale of the entity, validated each year by management.","es":""},"correct":false,"feedback":{"fr":"","en":"An internal scale does not necessarily reflect the market: fair value is determined under IFRS 13 and reflects market conditions at the reporting date (IAS 40, paras. 5 and 33). Rule to remember: The fair value of an investment property is determined under IFRS 13, on the basis of the market at the reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 13, to which IAS 40 refers for determining fair value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The IAS 16 revaluation model, because the property is a tangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 16 revaluation model is not the framework for the fair value of investment property: fair value is determined under IFRS 13 (IAS 40, paras. 5 and 33). Rule to remember: The fair value of an investment property is determined under IFRS 13, on the basis of the market at the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"The value in use of IAS 36, because it reflects the use the entity expects.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use is an entity-specific value, whereas fair value reflects the market and is determined under IFRS 13. Rule to remember: The fair value of an investment property is determined under IFRS 13, on the basis of the market at the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000061","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.LEASES_IN_VALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000061","tested_point":"QST.IAS40.000061","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-leases"},"references":["IAS 40 §40"],"exercise":{"prompt":{"fr":"","en":"A leased investment property is measured at fair value. How are the current leases taken into account in the measurement?","es":""},"explanation":{"fr":"","en":"The fair value measurement of a leased property takes the current leases into account (IAS 40, para. 40). Approach: ask whether the measurement concerns the property as leased. Trap: measuring the property as if free, or adding the leases to a value that already includes them. Rule to remember: The fair value of a leased property takes the current leases into account, without adding them a second time.","es":""},"common_error":{"fr":"","en":"Adding to the appraisal value items of the leases already included.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are taken into account in the fair value of the leased property.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They are ignored: the property is measured as if vacant.","es":""},"correct":false,"feedback":{"fr":"","en":"Ignoring the leases amounts to measuring another property: the fair value of a leased property takes the current leases into account (IAS 40, para. 40). Rule to remember: The fair value of a leased property takes the current leases into account, without adding them a second time.","es":""}},{"id":"C","text":{"fr":"","en":"They count only if the contractual rent is above market rents.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the leases into account does not depend on a rent above market: current leases enter the measurement of the leased property (IAS 40, para. 40). Rule to remember: The fair value of a leased property takes the current leases into account, without adding them a second time.","es":""}},{"id":"D","text":{"fr":"","en":"They are measured separately and added to the fair value of the property.","es":""},"correct":false,"feedback":{"fr":"","en":"Adding the leases to fair value would count them twice: they are already taken into account in the measurement of the leased property (IAS 40, para. 40). Rule to remember: The fair value of a leased property takes the current leases into account, without adding them a second time.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000062","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.LEASES_IN_VALUATION"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000062","tested_point":"QST.IAS40.000062","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-leases"},"references":["IAS 40 §40"],"exercise":{"prompt":{"fr":"","en":"Yvane holds a leased property, measured at fair value. The appraisal value, which takes the current leases into account, is {appraisal_value}. It includes {accrued_rent_receivable} of accrued rent not yet collected, already recognised separately as a receivable (case data). What amount does Yvane record for the investment property?","es":""},"explanation":{"fr":"","en":"Approach: the fair value of a leased property takes the current leases into account (IAS 40, para. 40), but the part already recognised separately as a receivable must not be counted a second time. Amount of the property = 12,400,000 − 180,000 = 12,220,000, the 180,000 receivable remaining on the balance sheet. Trap: recording 12,400,000 and thus creating double counting. Rule to remember: The amount of the property is obtained by deducting from the appraisal value the balances already recognised separately.","es":""},"common_error":{"fr":"","en":"Adding to the appraisal value the rent already recognised.","es":""},"format":"CALCULATION","placeholders":[{"id":"appraisal_value","value":"12400000","unit":"EUR"},{"id":"accrued_rent_receivable","value":"180000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Appraisal value (current leases included)","es":""},"value":"12400000","unit":"EUR"},{"label":{"fr":"","en":"Accrued rent already recognised as a receivable","es":""},"value":"180000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_OF_PROPERTY","label":{"fr":"","en":"Amount recorded for the investment property","es":""},"answer":12220000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_OF_PROPERTY","meaning":{"fr":"","en":"Amount recorded for the investment property","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Appraisal value (current leases included)","es":""},"value":12400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accrued rent already recognised as a receivable","es":""},"value":180000,"unit":"EUR"}],"result":12220000,"unit":"EUR"}],"rationale":{"fr":"","en":"The amount of the property is obtained by deducting from the appraisal value the balances already recognised separately.","es":""},"references":["REF.IAS40.40"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000064","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.DOUBLE_COUNTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000064","tested_point":"QST.IAS40.000064","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-double"},"references":["IAS 40 §50"],"exercise":{"prompt":{"fr":"","en":"A management accountant comments on the risk of double counting in the fair value measurement of an investment property. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule: items that fair value already includes are not added to it (IAS 40, para. 50). The first statement prescribes the opposite by recording separately the furniture already included in the appraisal value. Trap: multiplying the recording of assets that are already part of the measured property. Rule to remember: Items that the fair value of a property already includes are not added to it.","es":""},"common_error":{"fr":"","en":"Recognising separately an item already included in fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Fair value may already include items recognised elsewhere; they must not be counted twice.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: items that fair value already includes must not be added to it (IAS 40, para. 50). It is not the error. Rule to remember: Items that the fair value of a property already includes are not added to it.","es":""}},{"id":"B","text":{"fr":"","en":"\"To avoid double counting, amounts already recognised separately are deducted from the appraisal value.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: double counting is avoided by neutralising what is already recognised separately (IAS 40, para. 50). It is not the error. Rule to remember: Items that the fair value of a property already includes are not added to it.","es":""}},{"id":"C","text":{"fr":"","en":"\"If the appraisal value already includes the furniture of a furnished leased office, it is also recorded separately as an asset.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"Double counting would distort both the amount of the asset and the fair value result.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: counting the same item twice overstates the asset and the fair value result (IAS 40, para. 50). It is not the error. Rule to remember: Items that the fair value of a property already includes are not added to it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000065","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.DOUBLE_COUNTING"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000065","tested_point":"QST.IAS40.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-double"},"references":["IAS 40 §50"],"exercise":{"prompt":{"fr":"","en":"Zalvane leases furnished offices. The appraiser values the whole at {appraisal_value}, furniture included, because the rents pay for the furnished space. The furniture accounts for {furniture_recognised_separately} of that value (case data). What amount does it present for the investment property, without recognising the furniture as a separate asset?","es":""},"explanation":{"fr":"","en":"Approach: items that fair value already includes are not added to it (IAS 40, para. 50); here, the appraisal value includes the furniture. Amount of the property = 6,300,000; the furniture is not recognised in addition as a separate asset. Trap: adding 95,000 (6,395,000) or deducting it (6,205,000). Rule to remember: The amount of the property is the appraisal value that includes the furniture, with no separate furniture.","es":""},"common_error":{"fr":"","en":"Recognising the furniture separately although the appraisal value already includes it.","es":""},"format":"CALCULATION","placeholders":[{"id":"appraisal_value","value":"6300000","unit":"EUR"},{"id":"furniture_recognised_separately","value":"95000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Appraisal value (furniture included)","es":""},"value":"6300000","unit":"EUR"},{"label":{"fr":"","en":"Of which furniture included in the appraisal value","es":""},"value":"95000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_OF_PROPERTY","label":{"fr":"","en":"Amount presented for the investment property","es":""},"answer":6300000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000066","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.DOUBLE_COUNTING"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000066","tested_point":"QST.IAS40.000066","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-double"},"references":["IAS 40 §50"],"exercise":{"prompt":{"fr":"","en":"Ardane measures its investment property at fair value: 20,000,000 according to the appraiser, who includes the lifts and the air conditioning, integral parts of the building. The accountant also wants to record this equipment separately for 210,000 (case data). What should be done?","es":""},"explanation":{"fr":"","en":"Items that fair value already includes are not added to it (IAS 40, para. 50). The lifts and the air conditioning, integral parts of the building, are in the appraisal value of 20,000,000: recording them separately for 210,000 would count this equipment twice. Approach: identify what the appraisal value contains before any additional recording. Trap: seeking completeness by multiplying asset lines. Rule to remember: An item already included in the fair value of the property is not recorded separately as an asset.","es":""},"common_error":{"fr":"","en":"Seeking completeness by separately recognising what fair value already includes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Record it separately and add 210,000 to the appraisal value, to be complete.","es":""},"correct":false,"feedback":{"fr":"","en":"Adding 210,000 to a value that already includes the equipment would count it twice (IAS 40, para. 50). Rule to remember: An item already included in the fair value of the property is not recorded separately as an asset.","es":""}},{"id":"B","text":{"fr":"","en":"Not record it separately: fair value already includes it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Record it separately and deduct nothing from the appraisal value.","es":""},"correct":false,"feedback":{"fr":"","en":"Recording the equipment without deducting its value from that of the property counts it twice, which the rule prohibits (IAS 40, para. 50). Rule to remember: An item already included in the fair value of the property is not recorded separately as an asset.","es":""}},{"id":"D","text":{"fr":"","en":"Record it separately, but depreciate the building to compensate.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciating the building does not correct the double counting, and the fair value model applies without depreciation (IAS 40, para. 50). Rule to remember: An item already included in the fair value of the property is not recorded separately as an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000067","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.CANNOT_DETERMINE_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000067","tested_point":"QST.IAS40.000067","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-cannot"},"references":["IAS 40 §53"],"exercise":{"prompt":{"fr":"","en":"An entity may abandon the fair value model for a property as soon as measuring its fair value becomes difficult or costly.","es":""},"explanation":{"fr":"","en":"The fair value of a property is presumed to be reliably determinable on a continuing basis; the exception is rare and covers the case where, at acquisition, it is not (IAS 40, para. 53). Difficulty or cost of measurement is not enough to invoke it. Approach: start from the presumption and look for evidence at acquisition. Trap: claiming it is impossible to measure without supporting evidence. Rule to remember: Fair value is presumed reliably determinable; the exception is rare and requires evidence at acquisition.","es":""},"common_error":{"fr":"","en":"Claiming inability to measure without supporting evidence.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000068","standard_id":"IAS40","concept_ids":["IAS40.FVMODEL.CANNOT_DETERMINE_FV"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000068","tested_point":"QST.IAS40.000068","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000007","section_id":"rule-cannot"},"references":["IAS 40 §53"],"exercise":{"prompt":{"fr":"","en":"On acquiring a property, Brevane establishes that its fair value cannot be determined reliably on a continuing basis (exceptional case, documented evidence). It therefore applies the cost model until the property is disposed of. Cost: {cost}; useful life: {useful_life}; straight-line depreciation (case assumption). Calculate the annual depreciation charge.","es":""},"explanation":{"fr":"","en":"Approach: in the exception, the property follows the cost model until disposal, with a residual value assumed to be nil (IAS 40, para. 53). Depreciable amount = 4,800,000 − 0 = 4,800,000; annual charge = 4,800,000 / 40 = 120,000. Trap: imagining a non-nil residual value when the rule assumes it to be nil. Rule to remember: In the exception, the cost model applies until disposal with a residual value assumed to be nil.","es":""},"common_error":{"fr":"","en":"Using a non-nil residual value in the exception.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"4800000","unit":"EUR"},{"id":"useful_life","value":"40","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the property","es":""},"value":"4800000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"40","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Annual depreciation charge","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Annual depreciation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the property","es":""},"value":4800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":40,"unit":"YEARS"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"In the exception, the cost model applies until disposal with a residual value assumed to be nil.","es":""},"references":["REF.IAS40.53"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000070","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000070","tested_point":"QST.IAS40.000070","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-cost"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"An entity has chosen the cost model for its investment property. What does it do after initial recognition?","es":""},"explanation":{"fr":"","en":"Under the cost model, investment property follows the IAS 16 cost model after initial recognition, with depreciation and impairment (IAS 40, para. 56). Approach: identify the model chosen, then apply its rules. Trap: applying the IAS 16 revaluation model to an investment property. Rule to remember: Under the cost model, investment property is depreciated and impaired under IAS 16.","es":""},"common_error":{"fr":"","en":"Applying the IAS 16 revaluation model to an investment property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It revalues the property at fair value and recognises the difference in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 16 revaluation model is not the model adopted: investment property follows the IAS 16 cost model, with depreciation and impairment (IAS 40, para. 56). Rule to remember: Under the cost model, investment property is depreciated and impaired under IAS 16.","es":""}},{"id":"B","text":{"fr":"","en":"It measures the property at fair value and recognises the difference in profit or loss, without depreciating.","es":""},"correct":false,"feedback":{"fr":"","en":"This description is that of the fair value model. The cost model involves depreciation and impairment (IAS 40, para. 56). Rule to remember: Under the cost model, investment property is depreciated and impaired under IAS 16.","es":""}},{"id":"C","text":{"fr":"","en":"It keeps the original cost, with no depreciation or impairment as long as the property is leased.","es":""},"correct":false,"feedback":{"fr":"","en":"Cost is not frozen: the property is depreciated and impaired under IAS 16, whether leased or not (IAS 40, para. 56). Rule to remember: Under the cost model, investment property is depreciated and impaired under IAS 16.","es":""}},{"id":"D","text":{"fr":"","en":"It applies the IAS 16 cost model: depreciation and impairment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000071","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IAS16_COST_MODEL"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000071","tested_point":"QST.IAS40.000071","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-cost"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"Cormane applies the cost model to its investment property. Original cost: {cost}. Accumulated depreciation at the reporting date: {accumulated_depreciation}. Accumulated impairment losses: {accumulated_impairment}. Calculate the carrying amount of the property at the reporting date.","es":""},"explanation":{"fr":"","en":"Approach: under the cost model, the property follows IAS 16 with depreciation and impairment (IAS 40, para. 56). Carrying amount = cost − accumulated depreciation − accumulated impairment losses = 5,000,000 − 600,000 − 150,000 = 4,250,000. Trap: forgetting to deduct impairment losses or using fair value. Rule to remember: Under the cost model, the carrying amount is cost less accumulated depreciation and impairment losses.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct accumulated impairment losses.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"5000000","unit":"EUR"},{"id":"accumulated_depreciation","value":"600000","unit":"EUR"},{"id":"accumulated_impairment","value":"150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Original cost","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated impairment losses","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the reporting date","es":""},"answer":4250000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount at the reporting date","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Original cost","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Accumulated impairment losses","es":""},"value":150000,"unit":"EUR"}],"result":4250000,"unit":"EUR"}],"rationale":{"fr":"","en":"Under the cost model, the carrying amount is cost less accumulated depreciation and impairment losses.","es":""},"references":["REF.IAS40.56"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000073","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS5_HELD_FOR_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000073","tested_point":"QST.IAS40.000073","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-held-for-sale"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"An investment property measured under the cost model that meets the criteria for being held for sale remains subject to the IAS 16 cost model like the others.","es":""},"explanation":{"fr":"","en":"The IAS 16 cost model applies to investment property, except property held for sale, which falls under IFRS 5, and a lessee's right-of-use asset, which falls under IFRS 16 (IAS 40, para. 56). Approach: first check whether the property is held for sale. Trap: continuing to depreciate a property classified as held for sale. Rule to remember: The IAS 16 cost model applies, except to property held for sale (IFRS 5) and lessee right-of-use assets (IFRS 16).","es":""},"common_error":{"fr":"","en":"Depreciating a property classified as held for sale.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000074","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS5_HELD_FOR_SALE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000074","tested_point":"QST.IAS40.000074","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-held-for-sale"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"Evrane, which applies the cost model, decides to sell an investment property with a carrying amount of 2,400,000. The criteria for classification as held for sale are met on 30 June (case data). Which treatment is consistent with the rule?","es":""},"explanation":{"fr":"","en":"The IAS 16 cost model applies to investment property, except property held for sale (IAS 40, para. 56). As the criteria are met on 30 June (case data), Evrane applies IFRS 5: the property is no longer depreciated under IAS 16. Approach: test the held-for-sale criteria before any depreciation charge. Trap: continuing to depreciate until disposal. Rule to remember: Property held for sale falls under IFRS 5 and is no longer depreciated under the cost model.","es":""},"common_error":{"fr":"","en":"Continuing to depreciate a property whose held-for-sale criteria are met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The property falls under IFRS 5 and is no longer depreciated under the IAS 16 cost model.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The property continues to be depreciated under the IAS 16 cost model until actual disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Continuing to depreciate is the typical error: the IAS 16 cost model applies except to property held for sale (IAS 40, para. 56). Rule to remember: Property held for sale falls under IFRS 5 and is no longer depreciated under the cost model.","es":""}},{"id":"C","text":{"fr":"","en":"The property moves to the fair value model as soon as the decision to sell is made.","es":""},"correct":false,"feedback":{"fr":"","en":"The decision to sell does not change the model chosen for investment property: property held for sale simply follows IFRS 5 (IAS 40, para. 56). Rule to remember: Property held for sale falls under IFRS 5 and is no longer depreciated under the cost model.","es":""}},{"id":"D","text":{"fr":"","en":"The property is derecognised on 30 June, before any disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Property held for sale remains recognised until disposal: it is classified under IFRS 5, not derecognised (IAS 40, para. 56). Rule to remember: Property held for sale falls under IFRS 5 and is no longer depreciated under the cost model.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000075","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS16_ROU"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000075","tested_point":"QST.IAS40.000075","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-rou"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"An entity applies the cost model and holds a right-of-use asset meeting the definition of investment property. What must it do after initial recognition?","es":""},"explanation":{"fr":"","en":"Under the cost model, investment property, including right-of-use assets that meet its definition, is depreciated and impaired (IAS 40, para. 56). Approach: apply to the right-of-use asset the same pattern as to other properties. Trap: ignoring depreciation of the right-of-use asset because the property is leased rather than bought. Rule to remember: Under the cost model, a right-of-use asset held as investment property is depreciated and impaired.","es":""},"common_error":{"fr":"","en":"Ignoring the depreciation of the right-of-use asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Not depreciate the right-of-use asset, since it is not an item the entity owns.","es":""},"correct":false,"feedback":{"fr":"","en":"Not depreciating the right-of-use asset is the typical error: under the cost model, it is depreciated and impaired (IAS 40, para. 56), even though it is not an item held in full ownership. Rule to remember: Under the cost model, a right-of-use asset held as investment property is depreciated and impaired.","es":""}},{"id":"B","text":{"fr":"","en":"Revalue the right-of-use asset at fair value and recognise the difference in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation is not the cost model treatment: the right-of-use asset is depreciated and impaired (IAS 40, para. 56). Rule to remember: Under the cost model, a right-of-use asset held as investment property is depreciated and impaired.","es":""}},{"id":"C","text":{"fr":"","en":"Depreciate and impair the right-of-use asset, like any property measured under the cost model.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Expense the right-of-use asset as soon as the lease contract is signed.","es":""},"correct":false,"feedback":{"fr":"","en":"A right-of-use asset meeting the definition is an asset: it is not expensed but depreciated and impaired under the cost model (IAS 40, para. 56). Rule to remember: Under the cost model, a right-of-use asset held as investment property is depreciated and impaired.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000076","standard_id":"IAS40","concept_ids":["IAS40.COSTMODEL.IFRS16_ROU"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000076","tested_point":"QST.IAS40.000076","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000008","section_id":"rule-rou"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"Fluvane holds a right-of-use asset over a property leased to third parties, recognised as investment property under the cost model for 20,000 at inception, with a two-year lease. For teaching simplicity, assume straight-line depreciation over the lease term, with no residual value or impairment. What is the carrying amount of the right at the end of the first year?","es":""},"explanation":{"fr":"","en":"Under the cost model, a right-of-use asset held as investment property is depreciated (IAS 40, para. 56). Annual charge = 20,000 / 2 = 10,000 (teaching assumption of straight-line depreciation over the lease term); carrying amount at the end of the first year = 20,000 − 10,000 = 10,000. Trap: leaving the right at its original cost. Rule to remember: Under the cost model, the carrying amount of a right-of-use asset decreases each year by depreciation.","es":""},"common_error":{"fr":"","en":"Leaving the right-of-use asset at its original cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"20,000, the right-of-use asset not being depreciated.","es":""},"correct":false,"feedback":{"fr":"","en":"Not depreciating the right-of-use asset is the typical error: under the cost model, it is depreciated, giving 20,000 − 10,000 = 10,000 (IAS 40, para. 56). Rule to remember: Under the cost model, the carrying amount of a right-of-use asset decreases each year by depreciation.","es":""}},{"id":"B","text":{"fr":"","en":"0, the right being fully depreciated in the first year.","es":""},"correct":false,"feedback":{"fr":"","en":"Straight-line depreciation over two years removes half of the cost in the first year, not all of it: 10,000 remains (IAS 40, para. 56). Rule to remember: Under the cost model, the carrying amount of a right-of-use asset decreases each year by depreciation.","es":""}},{"id":"C","text":{"fr":"","en":"10,000, that is cost less one year of depreciation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"40,000, the right being revalued over the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost model has no revaluation: the right is depreciated, giving 10,000 at the end of the first year (IAS 40, para. 56). Rule to remember: Under the cost model, the carrying amount of a right-of-use asset decreases each year by depreciation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000077","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000077","tested_point":"QST.IAS40.000077","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-change"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"Under what condition may a property be transferred to or from investment property?","es":""},"explanation":{"fr":"","en":"Transfers to or from investment property are allowed only when there is a change in use, evidenced by facts; the list of examples has not been exhaustive since 2016 (IAS 40, para. 57). Approach: first look for the fact showing that the use of the property has changed. Trap: transferring on the sole basis of a management decision or a gap in value. Rule to remember: A transfer requires a change in use evidenced by facts.","es":""},"common_error":{"fr":"","en":"Transferring a property on the sole basis of a management decision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as management so decides at the start of the period, whatever the facts.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's decision is not enough: a transfer requires a change in use evidenced by facts (IAS 40, para. 57). Rule to remember: A transfer requires a change in use evidenced by facts.","es":""}},{"id":"B","text":{"fr":"","en":"Only when there is a change in use, evidenced by facts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At each reporting date, when the fair value of the property exceeds its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A gap between fair value and carrying amount triggers no transfer: only a change in use evidenced by facts counts (IAS 40, para. 57). Rule to remember: A transfer requires a change in use evidenced by facts.","es":""}},{"id":"D","text":{"fr":"","en":"Whenever the entity changes the way the property is financed, for instance by borrowing.","es":""},"correct":false,"feedback":{"fr":"","en":"The way of financing is not a use of the property: only a change in use evidenced by facts justifies a transfer (IAS 40, para. 57). Rule to remember: A transfer requires a change in use evidenced by facts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000078","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000078","tested_point":"QST.IAS40.000078","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-change"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"A consolidation manager comments on transfers of investment property. Which of the manager's statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. A transfer requires a change in use evidenced by facts, the list of examples being non-exhaustive since the 2016 amendment (IAS 40, para. 57). The first statement applies the former closed list. Trap: refusing a transfer because the observed fact is not on a list. Professional judgement: assess whether the evidence does show the change in use. Rule to remember: Since 2016, the list of examples of evidence of a change in use is not exhaustive.","es":""},"common_error":{"fr":"","en":"Applying the former closed list of evidence of a change in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The list of examples of evidence is closed: a change not listed can never justify a transfer.\"","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"\"A transfer requires a change in use of the property.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: transfers are allowed only when there is a change in use (IAS 40, para. 57). It is not the error. Rule to remember: Since 2016, the list of examples of evidence of a change in use is not exhaustive.","es":""}},{"id":"C","text":{"fr":"","en":"\"The change in use must be evidenced by facts.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the change in use must be evidenced by facts (IAS 40, para. 57). It is not the error. Rule to remember: Since 2016, the list of examples of evidence of a change in use is not exhaustive.","es":""}},{"id":"D","text":{"fr":"","en":"\"Since the 2016 amendment, the list of examples is no longer exhaustive.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the list of examples has not been exhaustive since the 2016 amendment (IAS 40, para. 57). It is not the error. Rule to remember: Since 2016, the list of examples of evidence of a change in use is not exhaustive.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000079","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000079","tested_point":"QST.IAS40.000079","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-change"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"Gavane leased a building to a third party. The lease ended; on 1 March, Gavane sets up its own offices in it and assigns its staff there (case facts). It measures its investment property under the cost model. Which reasoning is consistent with the rule?","es":""},"explanation":{"fr":"","en":"A transfer is possible only when there is a change in use, evidenced by facts (IAS 40, para. 57). Here, setting up the offices and assigning staff on 1 March are case facts evidencing the end of the lease and the start of occupation. Approach: identify facts, not intentions, then date the transfer. Professional judgement: keep the documents evidencing the date. Trap: dating the transfer from the board decision. Rule to remember: The transfer follows the date of the change in use evidenced by facts, not that of a decision or of the reporting date.","es":""},"common_error":{"fr":"","en":"Dating a transfer from management's decision rather than from the fact that changes the use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The transfer is made on the date of the board meeting that mentioned the project, before any fact.","es":""},"correct":false,"feedback":{"fr":"","en":"Mentioning a project at a board meeting is management's intention, which is not enough to evidence a change in use (IAS 40, para. 57). Rule to remember: The transfer follows the date of the change in use evidenced by facts, not that of a decision or of the reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"The transfer is made at the reporting date, whatever the date of occupation.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not the triggering event: the transfer follows the date of the change in use evidenced by facts (IAS 40, para. 57). Rule to remember: The transfer follows the date of the change in use evidenced by facts, not that of a decision or of the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"A transfer is never possible: an investment property remains one until it is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"A transfer is possible whenever a change in use is evidenced by facts, which is the case here (IAS 40, para. 57). Rule to remember: The transfer follows the date of the change in use evidenced by facts, not that of a decision or of the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"The start of occupation by Gavane evidences a change in use: the transfer to owner-occupied property is made on that date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000080","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.EVIDENCE_NOT_INTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000080","tested_point":"QST.IAS40.000080","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-evidence"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"The board's decision to sell a leased property is enough, on its own, to evidence a change in use justifying its transfer to inventory.","es":""},"explanation":{"fr":"","en":"A change in management's intention, on its own, is not evidence of a change in use (IAS 40, para. 57); a transfer requires a change in use evidenced by facts (IAS 40, para. 57). Approach: look for a fact that changes the use of the property. Trap: citing intention alone as evidence. Rule to remember: Management's intention, on its own, does not evidence a change in use.","es":""},"common_error":{"fr":"","en":"Citing intention alone as evidence of a change in use.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000081","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.EVIDENCE_NOT_INTENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000081","tested_point":"QST.IAS40.000081","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-evidence"},"references":["IAS 40 §57"],"exercise":{"prompt":{"fr":"","en":"Among these facts about a property, which can evidence a change in use, as opposed to a mere management intention? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"A change in use must be evidenced by facts, the list of examples being non-exhaustive since 2016 (IAS 40, para. 57); a change in management's intention, on its own, is not evidence of it (IAS 40, para. 57). Here, the start or end of occupation and the start of development with a view to sale are facts; a statement or an unapproved plan are intentions. Approach: separate facts from intentions. Trap: taking a statement for evidence. Rule to remember: Facts that change the use evidence a change in use; a mere intention does not.","es":""},"common_error":{"fr":"","en":"Citing intention alone as evidence of a change in use.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity starts to occupy the building itself, which was previously leased.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The chief executive states that he is considering occupying the building one day, with no further step.","es":""},"correct":false,"feedback":{"fr":"","en":"A mere statement of intention, with no step taken, does not evidence a change in use (IAS 40, para. 57). Rule to remember: Facts that change the use evidence a change in use; a mere intention does not.","es":""}},{"id":"C","text":{"fr":"","en":"The entity begins developing a property with a view to selling it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An unapproved internal strategic plan mentions a possible reassignment of the property.","es":""},"correct":false,"feedback":{"fr":"","en":"An unapproved plan expresses an intention, which is not enough to evidence a change in use (IAS 40, para. 57). Rule to remember: Facts that change the use evidence a change in use; a mere intention does not.","es":""}},{"id":"E","text":{"fr":"","en":"The entity's occupation of the building ends.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000083","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.COST_MODEL_NO_CHANGE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000083","tested_point":"QST.IAS40.000083","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-cost-model"},"references":["IAS 40 §59"],"exercise":{"prompt":{"fr":"","en":"Under the cost model, the transfer of an investment property to owner-occupied property leads to remeasuring it at fair value at the date of the change in use.","es":""},"explanation":{"fr":"","en":"Under the cost model, transfers between investment property, owner-occupied property and inventory do not change the carrying amount (IAS 40, para. 59). Approach: first identify the model applied. Trap: applying to the cost model the fair-value-at-date-of-change rule, which concerns the fair value model. Rule to remember: Under the cost model, a transfer does not change the carrying amount of the property.","es":""},"common_error":{"fr":"","en":"Remeasuring the property on a transfer under the cost model.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000085","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.COST_MODEL_NO_CHANGE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000085","tested_point":"QST.IAS40.000085","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-cost-model"},"references":["IAS 40 §59"],"exercise":{"prompt":{"fr":"","en":"Jolvane, which applies the cost model, transfers an investment property to owner-occupied property after an evidenced change in use. Cost: 6,000,000; accumulated depreciation: 1,500,000; fair value at the date of transfer: 7,200,000 (case data). At what carrying amount is the owner-occupied property recorded after the transfer?","es":""},"explanation":{"fr":"","en":"Under the cost model, transfers do not change the carrying amount (IAS 40, para. 59). The owner-occupied property is therefore recorded at 6,000,000 − 1,500,000 = 4,500,000; the fair value of 7,200,000 is a datum not used here. Approach: identify the model, then carry over the carrying amount. Trap: reaching for fair value as in the fair value model. Rule to remember: Under the cost model, the carrying amount of the transferred property is unchanged.","es":""},"common_error":{"fr":"","en":"Using fair value on a transfer under the cost model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"7,200,000, the fair value at the date of transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value at the date of transfer is not the basis under the cost model: the carrying amount does not change, that is 4,500,000 (IAS 40, para. 59). Rule to remember: Under the cost model, the carrying amount of the transferred property is unchanged.","es":""}},{"id":"B","text":{"fr":"","en":"4,500,000, the carrying amount before the transfer.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"6,000,000, the original cost without accumulated depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Using gross cost would forget accumulated depreciation: the unchanged carrying amount is 4,500,000 (IAS 40, para. 59). Rule to remember: Under the cost model, the carrying amount of the transferred property is unchanged.","es":""}},{"id":"D","text":{"fr":"","en":"2,700,000, the difference between fair value and carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The 2,700,000 difference is not a value of the property: under the cost model, the carrying amount remains 4,500,000 (IAS 40, para. 59). Rule to remember: Under the cost model, the carrying amount of the transferred property is unchanged.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000086","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000086","tested_point":"QST.IAS40.000086","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §61","IAS 40 §62"],"exercise":{"prompt":{"fr":"","en":"Owner-occupied property becomes an investment property that will be measured at fair value. What treatment applies up to the date of the change in use, and on that date?","es":""},"explanation":{"fr":"","en":"For owner-occupied property that becomes an investment property measured at fair value, the entity depreciates and impairs it up to the date of the change in use, then treats the difference between carrying amount and fair value as a revaluation under IAS 16 (IAS 40, paras. 61-62). Approach: stop depreciation at the date of the change, then compare carrying amount with fair value. Trap: applying fair value before the date of the change in use. Rule to remember: Up to the change in use, IAS 16 applies; the difference with fair value is treated as a revaluation.","es":""},"common_error":{"fr":"","en":"Recognising the increase in value in profit or loss at the date of transfer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Measurement at fair value from the start of the period, with a difference recognised in profit or loss at the date of transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value applies only from the change in use: up to that date, the property is depreciated and impaired under IAS 16, and the difference follows the treatment of a revaluation (IAS 40, paras. 61-62). Rule to remember: Up to the change in use, IAS 16 applies; the difference with fair value is treated as a revaluation.","es":""}},{"id":"B","text":{"fr":"","en":"No depreciation up to that date, then the difference with fair value ignored.","es":""},"correct":false,"feedback":{"fr":"","en":"The property is depreciated and impaired up to the date of the change in use, and the difference with fair value is not ignored: it is treated as a revaluation (IAS 40, paras. 61-62). Rule to remember: Up to the change in use, IAS 16 applies; the difference with fair value is treated as a revaluation.","es":""}},{"id":"C","text":{"fr":"","en":"Transfer at carrying amount, with no difference arising in the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"A difference between carrying amount and fair value does arise on the date of transfer and is treated as a revaluation under IAS 16 (IAS 40, paras. 61-62). Rule to remember: Up to the change in use, IAS 16 applies; the difference with fair value is treated as a revaluation.","es":""}},{"id":"D","text":{"fr":"","en":"Depreciation and impairment up to that date, then the difference with fair value treated as a revaluation under IAS 16.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000087","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000087","tested_point":"QST.IAS40.000087","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §61","IAS 40 §62"],"exercise":{"prompt":{"fr":"","en":"On 1 April, Itérane stops occupying a building and starts leasing it to third parties (change in use, case data). It measures its investment property at fair value. Up to that date, the building has been depreciated under IAS 16: its carrying amount is {previous_carrying_amount}. Its fair value at the date of the change in use is {fair_value_at_change}. Calculate the difference to be treated as a revaluation under IAS 16.","es":""},"explanation":{"fr":"","en":"Approach: the property is depreciated and impaired up to the date of the change in use, then the difference between its carrying amount and its fair value is treated as a revaluation under IAS 16 (IAS 40, paras. 61-62). Difference = 6,300,000 − 5,600,000 = 700,000 (increase). Trap: recognising this increase directly in profit or loss like that of inventory. Rule to remember: The difference between fair value and carrying amount of a transferred owner-occupied property follows the treatment of a revaluation.","es":""},"common_error":{"fr":"","en":"Recognising the increase in value in profit or loss at the date of transfer.","es":""},"format":"CALCULATION","placeholders":[{"id":"previous_carrying_amount","value":"5600000","unit":"EUR"},{"id":"fair_value_at_change","value":"6300000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount before transfer","es":""},"value":"5600000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the date of the change in use","es":""},"value":"6300000","unit":"EUR"}],"steps":[{"id":"TRANSFER_DIFFERENCE","label":{"fr":"","en":"Difference treated as a revaluation","es":""},"answer":700000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSFER_DIFFERENCE","meaning":{"fr":"","en":"Difference treated as a revaluation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the date of the change in use","es":""},"value":6300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount before transfer","es":""},"value":5600000,"unit":"EUR"}],"result":700000,"unit":"EUR"}],"rationale":{"fr":"","en":"The difference between fair value and carrying amount of a transferred owner-occupied property follows the treatment of a revaluation.","es":""},"references":["REF.IAS40.61","REF.IAS40.62"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000089","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.OWNER_OCCUPIED_TO_IP"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000089","tested_point":"QST.IAS40.000089","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §61","IAS 40 §62"],"exercise":{"prompt":{"fr":"","en":"Lunvane stops occupying a building, carrying amount 4,000,000 under IAS 16, and leases it to third parties (change in use evidenced). It measures its investment property at fair value, which is 3,700,000 at that date. The building has never been revalued and no revaluation surplus exists (case data). How is the 300,000 difference treated?","es":""},"explanation":{"fr":"","en":"Up to the change in use, IAS 16 applies; the difference between carrying amount and fair value is treated as a revaluation (IAS 40, paras. 61-62). Here, fair value (3,700,000) is lower than carrying amount (4,000,000): a decrease of 300,000. With no earlier revaluation surplus to offset (case data), it is recognised in profit or loss. Approach: determine the direction of the difference, then treat it as a revaluation. Trap: recognising a decrease in other comprehensive income. Rule to remember: The transfer difference of an owner-occupied property follows the revaluation treatment: a decrease with no surplus to offset goes to profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in other comprehensive income a decrease with no earlier surplus.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a revaluation decrease under IAS 16, therefore recognised in profit or loss for lack of a surplus to offset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As an increase, recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a decrease (3,700,000 against 4,000,000), not an increase: the IAS 16 revaluation treatment recognises it in profit or loss for lack of a surplus (IAS 40, paras. 61-62). Rule to remember: The transfer difference of an owner-occupied property follows the revaluation treatment: a decrease with no surplus to offset goes to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"As an additional cost, added to the carrying amount of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"A decrease in value is not added to cost: the difference is treated as a revaluation, here a decrease recognised in profit or loss (IAS 40, paras. 61-62). Rule to remember: The transfer difference of an owner-occupied property follows the revaluation treatment: a decrease with no surplus to offset goes to profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"As a deferred income, spread over the remaining life of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is not spread: it is treated as a revaluation at the date of the change in use (IAS 40, paras. 61-62). Rule to remember: The transfer difference of an owner-occupied property follows the revaluation treatment: a decrease with no surplus to offset goes to profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000090","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.INVENTORY_TO_IP"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000090","tested_point":"QST.IAS40.000090","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"On the transfer of inventory to investment property measured at fair value, the difference between fair value and the previous carrying amount is recognised in other comprehensive income.","es":""},"explanation":{"fr":"","en":"For inventory transferred to investment property measured at fair value, the difference between fair value and the previous carrying amount is recognised in profit or loss (IAS 40, para. 63). Approach: identify the original category of the property. Trap: applying to inventory the revaluation treatment reserved for owner-occupied property. Rule to remember: For inventory transferred to investment property, the difference with fair value is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in other comprehensive income the difference between fair value and the carrying amount of inventory.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000091","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.INVENTORY_TO_IP"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000091","tested_point":"QST.IAS40.000091","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"Marlane, a developer, held apartments in inventory for sale, recorded at {previous_carrying_amount}. For lack of buyers, it leases them to third parties (change in use evidenced, case data). It measures its investment property at fair value, which is {fair_value_at_change} at the date of the change. What gain does it recognise in profit or loss for the transfer?","es":""},"explanation":{"fr":"","en":"Approach: for inventory transferred to investment property measured at fair value, the difference between fair value and the previous carrying amount is recognised in profit or loss (IAS 40, para. 63). Gain = 2,450,000 − 2,100,000 = 350,000. Trap: recognising this difference in other comprehensive income as for owner-occupied property. Rule to remember: The difference between fair value and the previous carrying amount of transferred inventory is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in other comprehensive income the difference on transferred inventory.","es":""},"format":"CALCULATION","placeholders":[{"id":"previous_carrying_amount","value":"2100000","unit":"EUR"},{"id":"fair_value_at_change","value":"2450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of inventory before transfer","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the date of the change in use","es":""},"value":"2450000","unit":"EUR"}],"steps":[{"id":"TRANSFER_DIFFERENCE","label":{"fr":"","en":"Gain recognised in profit or loss","es":""},"answer":350000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TRANSFER_DIFFERENCE","meaning":{"fr":"","en":"Gain recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the date of the change in use","es":""},"value":2450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of inventory before transfer","es":""},"value":2100000,"unit":"EUR"}],"result":350000,"unit":"EUR"}],"rationale":{"fr":"","en":"The difference between fair value and the previous carrying amount of transferred inventory is recognised in profit or loss.","es":""},"references":["REF.IAS40.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000093","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.INVENTORY_TO_IP"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000093","tested_point":"QST.IAS40.000093","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §63"],"exercise":{"prompt":{"fr":"","en":"An accounting director comments on the transfer of inventory to an investment property measured at fair value. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. For inventory transferred to investment property measured at fair value, the difference between fair value and the previous carrying amount is recognised in profit or loss (IAS 40, para. 63). Only the first statement picks other comprehensive income. Professional judgement: check that the change in use is evidenced before recognising the gain. Trap: applying a revaluation treatment to inventory. Rule to remember: For inventory transferred to investment property at fair value, the difference is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in OCI the difference between fair value and the carrying amount of inventory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The difference is that between fair value and the previous carrying amount of the inventory.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the difference is measured between fair value and the previous carrying amount (IAS 40, para. 63). It is not the error. Rule to remember: For inventory transferred to investment property at fair value, the difference is recognised in profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"\"The difference is recognised in profit or loss.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the difference is recognised in profit or loss (IAS 40, para. 63). It is not the error. Rule to remember: For inventory transferred to investment property at fair value, the difference is recognised in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"\"The difference is recognised in other comprehensive income, because the property changes category.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"This treatment concerns a property that will be measured under the fair value model.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the rule concerns an investment property measured at fair value (IAS 40, para. 63). It is not the error. Rule to remember: For inventory transferred to investment property at fair value, the difference is recognised in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000094","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_OWNER_OCCUPIED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000094","tested_point":"QST.IAS40.000094","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"An investment property measured at fair value becomes owner-occupied property after an evidenced change in use. What is its deemed cost for subsequent accounting?","es":""},"explanation":{"fr":"","en":"When an investment property measured at fair value becomes owner-occupied property or inventory, its deemed cost for subsequent accounting is its fair value at the date of the change in use (IAS 40, para. 60). Approach: fix fair value at that date, then take it as the new cost. Trap: keeping the old carrying amount as deemed cost. Rule to remember: The deemed cost of a transferred investment property at fair value is its fair value at the date of the change in use.","es":""},"common_error":{"fr":"","en":"Keeping the old carrying amount as deemed cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its carrying amount before the last change in fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the old carrying amount is the typical error: the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). Rule to remember: The deemed cost of a transferred investment property at fair value is its fair value at the date of the change in use.","es":""}},{"id":"B","text":{"fr":"","en":"Its original cost, before any change in fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Original cost is not the basis: the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). Rule to remember: The deemed cost of a transferred investment property at fair value is its fair value at the date of the change in use.","es":""}},{"id":"C","text":{"fr":"","en":"Nil, the property having left the balance sheet on transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"The property has not left the balance sheet: it remains recognised, with the fair value at the date of the change in use as deemed cost (IAS 40, para. 60). Rule to remember: The deemed cost of a transferred investment property at fair value is its fair value at the date of the change in use.","es":""}},{"id":"D","text":{"fr":"","en":"Its fair value at the date of the change in use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000095","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_OWNER_OCCUPIED"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000095","tested_point":"QST.IAS40.000095","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"Oravane measures its investment property at fair value. On 1 October, it moves its head office into one of them (change in use evidenced, case data). Its carrying amount at the last reporting date was {previous_carrying_amount}; its fair value on 1 October is {fair_value_at_change}. At what amount is the owner-occupied property recognised, as deemed cost, in its subsequent accounting?","es":""},"explanation":{"fr":"","en":"Approach: on a transfer from investment property at fair value to owner-occupied property, the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60), that is 4,750,000. The carrying amount of 4,600,000 is only a comparison datum. Trap: carrying over the carrying amount of the last reporting date as cost. Rule to remember: The deemed cost is the fair value at the date of the change in use, not the carrying amount of the last reporting date.","es":""},"common_error":{"fr":"","en":"Keeping the old carrying amount as deemed cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"previous_carrying_amount","value":"4600000","unit":"EUR"},{"id":"fair_value_at_change","value":"4750000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount at the last reporting date","es":""},"value":"4600000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the date of the change in use","es":""},"value":"4750000","unit":"EUR"}],"steps":[{"id":"DEEMED_COST","label":{"fr":"","en":"Deemed cost of the owner-occupied property","es":""},"answer":4750000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000097","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_OWNER_OCCUPIED"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000097","tested_point":"QST.IAS40.000097","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"Quivane measures its investment property at fair value: 8,000,000 at the last reporting date for a property it begins to occupy entirely as offices on 1 September, which evidences a change in use (case data). Its fair value on 1 September is 8,300,000. What amount should be used as the deemed cost of the owner-occupied property?","es":""},"explanation":{"fr":"","en":"The deemed cost of a property transferred from investment property at fair value is its fair value at the date of the change in use (IAS 40, para. 60), that is 8,300,000 on 1 September (case data). The value at the last reporting date, 8,000,000, precedes it. Approach: date the change, then take the fair value at that date. Professional judgement: document the measurement at the date chosen. Trap: carrying over the last published value. Rule to remember: The deemed cost is the fair value at the date of the change in use, not the last published value.","es":""},"common_error":{"fr":"","en":"Carrying over the last published value as deemed cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"8,000,000, the value at the last reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The value at the last reporting date precedes the change in use: the deemed cost is the fair value on 1 September, that is 8,300,000 (IAS 40, para. 60). Rule to remember: The deemed cost is the fair value at the date of the change in use, not the last published value.","es":""}},{"id":"B","text":{"fr":"","en":"8,300,000, the fair value at the date of the change in use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"300,000, the difference between the two values.","es":""},"correct":false,"feedback":{"fr":"","en":"The 300,000 difference is a change in value, not the cost of the property: the deemed cost is the fair value of 8,300,000 (IAS 40, para. 60). Rule to remember: The deemed cost is the fair value at the date of the change in use, not the last published value.","es":""}},{"id":"D","text":{"fr":"","en":"8,150,000, the average of the two values.","es":""},"correct":false,"feedback":{"fr":"","en":"An average of values is not a fair value: the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). Rule to remember: The deemed cost is the fair value at the date of the change in use, not the last published value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000098","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_INVENTORY"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000098","tested_point":"QST.IAS40.000098","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"A management accountant comments on the transfer of an investment property measured at fair value to inventories. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. For a transfer from investment property at fair value to inventory, the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). The first statement wrongly keeps the old carrying amount. Trap: keeping the old carrying amount as deemed cost. Rule to remember: The deemed cost of inventory arising from investment property at fair value is its fair value at the date of the change in use.","es":""},"common_error":{"fr":"","en":"Keeping the old carrying amount as the deemed cost of the inventory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The inventory keeps the property's previous carrying amount as its deemed cost.\"","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"\"The deemed cost of the inventory is the fair value at the date of the change in use.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). It is not the error. Rule to remember: The deemed cost of inventory arising from investment property at fair value is its fair value at the date of the change in use.","es":""}},{"id":"C","text":{"fr":"","en":"\"The inventory is subsequently measured under IAS 2.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: after the transfer, accounting follows the standard applicable to inventory, with fair value as deemed cost (IAS 40, para. 60). It is not the error. Rule to remember: The deemed cost of inventory arising from investment property at fair value is its fair value at the date of the change in use.","es":""}},{"id":"D","text":{"fr":"","en":"\"The transfer concerns an investment property measured at fair value.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the rule concerns an investment property measured at fair value (IAS 40, para. 60). It is not the error. Rule to remember: The deemed cost of inventory arising from investment property at fair value is its fair value at the date of the change in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000099","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.IP_TO_INVENTORY"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000099","tested_point":"QST.IAS40.000099","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-fv-transfers"},"references":["IAS 40 §60"],"exercise":{"prompt":{"fr":"","en":"Ravane measures at fair value an investment property made up of 24 identical apartments. It begins developing the building with a view to selling the apartments (change in use evidenced, case data). On that date, fair value is {fair_value_per_apartment} per apartment; the carrying amount at the last reporting date was {previous_carrying_amount}. What is the deemed cost of the inventory?","es":""},"explanation":{"fr":"","en":"Approach: on a transfer from investment property at fair value to inventory, the deemed cost is the fair value at the date of the change in use (IAS 40, para. 60). Deemed cost = 24 × 525,000 = 12,600,000. The carrying amount of 12,150,000 is only a comparison datum. Trap: carrying over the old carrying amount. Rule to remember: The deemed cost of the inventory is the fair value at the date of the change in use, not the old carrying amount.","es":""},"common_error":{"fr":"","en":"Keeping the old carrying amount as deemed cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value_per_apartment","value":"525000","unit":"EUR"},{"id":"previous_carrying_amount","value":"12150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value per apartment at the date of the change","es":""},"value":"525000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount at the last reporting date","es":""},"value":"12150000","unit":"EUR"}],"steps":[{"id":"DEEMED_COST","label":{"fr":"","en":"Deemed cost of the inventory","es":""},"answer":12600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEEMED_COST","meaning":{"fr":"","en":"Deemed cost of the inventory","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ravane measures at fair value an investment property made up of 24 identical apartments","es":""},"value":24},{"symbol":"b","meaning":{"fr":"","en":"Fair value per apartment at the date of the change","es":""},"value":525000,"unit":"EUR"}],"result":12600000,"unit":"EUR"}],"rationale":{"fr":"","en":"The deemed cost of the inventory is the fair value at the date of the change in use, not the old carrying amount.","es":""},"references":["REF.IAS40.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000102","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DERECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000102","tested_point":"QST.IAS40.000102","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-derecognition"},"references":["IAS 40 §66"],"exercise":{"prompt":{"fr":"","en":"An investment property is derecognised as soon as management decides to put it up for sale.","es":""},"explanation":{"fr":"","en":"An investment property is derecognised on disposal, or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal (IAS 40, para. 66). A mere decision or marketing for sale meets neither condition. Approach: check whether the disposal has taken place or whether the withdrawal is permanent. Trap: derecognising a property that is merely for sale. Rule to remember: Derecognition occurs on disposal or on permanent withdrawal with no future benefit expected, not when the property is put up for sale.","es":""},"common_error":{"fr":"","en":"Derecognising a property that is merely put up for sale.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000103","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DERECOGNITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000103","tested_point":"QST.IAS40.000103","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-derecognition"},"references":["IAS 40 §66"],"exercise":{"prompt":{"fr":"","en":"An accountant states four rules on derecognition of an investment property. Which is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each rule against the two cases of derecognition: disposal, or permanent withdrawal from use with no future benefit expected from disposal (IAS 40, para. 66). The first rule wrongly adds the mere offering for sale. Trap: confusing the intention to dispose with the disposal itself. Rule to remember: An investment property is derecognised on disposal or on permanent withdrawal with no future benefit expected from disposal.","es":""},"common_error":{"fr":"","en":"Derecognising a property that is merely put up for sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The property is derecognised on disposal.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: disposal derecognises the property (IAS 40, para. 66). It is not the error. Rule to remember: An investment property is derecognised on disposal or on permanent withdrawal with no future benefit expected from disposal.","es":""}},{"id":"B","text":{"fr":"","en":"\"The property is derecognised when permanently withdrawn from use and no future benefit is expected from its disposal.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: permanent withdrawal with no future benefit expected from disposal derecognises the property (IAS 40, para. 66). It is not the error. Rule to remember: An investment property is derecognised on disposal or on permanent withdrawal with no future benefit expected from disposal.","es":""}},{"id":"C","text":{"fr":"","en":"\"The property is derecognised as soon as it is put up for sale, before any disposal.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"A property withdrawn from use but whose disposal is still expected to bring a benefit is not derecognised on withdrawal.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct rule: if a benefit is still expected from disposal, the second condition is not met and the property remains recognised (IAS 40, para. 66). It is not the error. Rule to remember: An investment property is derecognised on disposal or on permanent withdrawal with no future benefit expected from disposal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000104","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DERECOGNITION","IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000104","tested_point":"QST.IAS40.000104","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-derecognition"},"references":["IAS 40 §66","IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"A fire destroys Hortane's investment property, measured under the cost model and carried at 1,200,000. The property is permanently out of use and no disposal proceeds are expected (case facts). Which treatment is consistent with the rule?","es":""},"explanation":{"fr":"","en":"A property permanently withdrawn from use, with no future benefit expected from its disposal, is derecognised (IAS 40, para. 66). The result is the difference between net disposal proceeds (nil) and the carrying amount, recognised in profit or loss (IAS 40, para. 69): a loss of 1,200,000. Approach: verify the permanent withdrawal, then calculate the loss. Trap: keeping a destroyed property on the balance sheet. Rule to remember: A property permanently withdrawn from use with no future benefit expected is derecognised, the loss going to profit or loss.","es":""},"common_error":{"fr":"","en":"Keeping a permanently unusable property as an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep the property as an asset until it is actually demolished.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the property is not justified: permanently withdrawn from use, with no future benefit expected from its disposal, it is derecognised (IAS 40, para. 66). Rule to remember: A property permanently withdrawn from use with no future benefit expected is derecognised, the loss going to profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"Reclassify the property as inventory at 1,200,000 pending a possible sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The destroyed property is not inventory: as no benefit is expected, it is derecognised (IAS 40, para. 66). Rule to remember: A property permanently withdrawn from use with no future benefit expected is derecognised, the loss going to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"Spread the loss of 1,200,000 over the following periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The derecognition loss is not spread: the difference between net proceeds and carrying amount is recognised in profit or loss (IAS 40, para. 69). Rule to remember: A property permanently withdrawn from use with no future benefit expected is derecognised, the loss going to profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"Derecognise the property and recognise a loss of 1,200,000 in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000105","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DATE_OF_DISPOSAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000105","tested_point":"QST.IAS40.000105","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-date"},"references":["IAS 40 §67"],"exercise":{"prompt":{"fr":"","en":"On what date is a sold investment property derecognised?","es":""},"explanation":{"fr":"","en":"The date of disposal is the date on which the recipient obtains control of the property, under the revenue recognition rules (IAS 40, para. 67). Approach: identify the event that transfers control. Trap: using the date a sale promise is signed as the date of disposal. Rule to remember: The date of disposal is the date the recipient obtains control of the property.","es":""},"common_error":{"fr":"","en":"Using the signing date of the sale promise as the date of disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the date the buyer obtains control of the property, under the revenue recognition rules.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On the date a sale promise is signed, even if conditions remain unmet.","es":""},"correct":false,"feedback":{"fr":"","en":"A promise with unmet conditions does not transfer control: using its date is the typical error (IAS 40). Rule to remember: The date of disposal is the date the recipient obtains control of the property.","es":""}},{"id":"C","text":{"fr":"","en":"On the date of final payment of the price, even if control passed earlier.","es":""},"correct":false,"feedback":{"fr":"","en":"Final payment is not the criterion: the date of disposal is the date the recipient obtains control (IAS 40). Rule to remember: The date of disposal is the date the recipient obtains control of the property.","es":""}},{"id":"D","text":{"fr":"","en":"On the date the announcement offering the property for sale is published.","es":""},"correct":false,"feedback":{"fr":"","en":"An announcement offering the property for sale transfers nothing: the disposal is on the date the recipient obtains control (IAS 40). Rule to remember: The date of disposal is the date the recipient obtains control of the property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000106","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.DATE_OF_DISPOSAL"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000106","tested_point":"QST.IAS40.000106","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-date"},"references":["IAS 40 §67"],"exercise":{"prompt":{"fr":"","en":"On 15 November, Isarne signs a sale promise for an investment property, subject to conditions precedent. The final deed is signed and the keys handed to the buyer on 20 December, when the buyer obtains control (case facts). The reporting date is 31 December. On what date is the property derecognised?","es":""},"explanation":{"fr":"","en":"The date of disposal is the date on which the recipient obtains control of the property, under the revenue recognition rules (IAS 40, para. 67). Here, the buyer obtains control on 20 December, on signature of the final deed and handover of the keys (case facts), before the reporting date of 31 December. Approach: set aside dates that precede or follow the transfer of control. Trap: using the date of the promise. Rule to remember: Disposal is recognised at the date control passes, not at that of the promise or of the reporting date.","es":""},"common_error":{"fr":"","en":"Using the signing date of the sale promise as the date of disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On 15 November, the date the sale promise is signed.","es":""},"correct":false,"feedback":{"fr":"","en":"On 15 November, the promise is subject to conditions precedent and control has not passed: that date is not the date of disposal (IAS 40). Rule to remember: Disposal is recognised at the date control passes, not at that of the promise or of the reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"On 20 December, the date the buyer obtains control.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On 31 December, the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not a criterion for disposal: the date is the one on which the buyer obtains control, 20 December (IAS 40). Rule to remember: Disposal is recognised at the date control passes, not at that of the promise or of the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"After 31 December, on full settlement of the price.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement of the price is not the criterion: control being obtained on 20 December, that is the date of disposal (IAS 40). Rule to remember: Disposal is recognised at the date control passes, not at that of the promise or of the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000107","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.REPLACED_PARTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000107","tested_point":"QST.IAS40.000107","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-replaced"},"references":["IAS 40 §68"],"exercise":{"prompt":{"fr":"","en":"When a part of an investment property is replaced, the carrying amount of the replaced part stays on the balance sheet in addition to the cost of the new part.","es":""},"explanation":{"fr":"","en":"When a part is replaced, the carrying amount of the replaced part is derecognised (IAS 40, para. 68), the cost of the new part being recognised as an asset if the criteria are met. Keeping the old part would count the item twice. Approach: remove the old part, capitalise the new one. Trap: keeping the value of the replaced part. Rule to remember: The carrying amount of the replaced part is derecognised on replacement.","es":""},"common_error":{"fr":"","en":"Keeping the value of the replaced part.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000108","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS","IAS40.DISPOSAL.REPLACED_PARTS"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000108","tested_point":"QST.IAS40.000108","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-gain-loss"},"references":["IAS 40 §68","IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Jovane, which applies the cost model, replaces the lift of an investment property. The new lift costs {replacement_cost} and meets the recognition criteria. The old lift was carried at {carrying_amount_of_replaced_part} (case data) and has no disposal value. Calculate the loss to recognise on the replaced part and the net change in the carrying amount of the property.","es":""},"explanation":{"fr":"","en":"Approach: the carrying amount of the replaced part is derecognised (IAS 40) and the cost of the new part is recognised as an asset. With no disposal proceeds, the difference from the carrying amount derecognised is a loss in profit or loss (IAS 40, para. 69): 120,000. Net change = 450,000 − 120,000 = 330,000. Trap: keeping the old lift as an asset in addition to the new one, that is a change of 450,000. Rule to remember: On replacement, the new part is capitalised and the carrying amount of the old one is written off to profit or loss.","es":""},"common_error":{"fr":"","en":"Keeping the value of the replaced part.","es":""},"format":"CALCULATION","placeholders":[{"id":"replacement_cost","value":"450000","unit":"EUR"},{"id":"carrying_amount_of_replaced_part","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the new lift","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the old lift","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"LOSS_ON_REPLACED_PART","label":{"fr":"","en":"Loss on the replaced part","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"NET_CHANGE_IN_CARRYING_AMOUNT","label":{"fr":"","en":"Net change in the carrying amount of the property","es":""},"answer":330000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_CHANGE_IN_CARRYING_AMOUNT","meaning":{"fr":"","en":"Net change in the carrying amount of the property","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the new lift","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the old lift","es":""},"value":120000,"unit":"EUR"}],"result":330000,"unit":"EUR"}],"rationale":{"fr":"","en":"On replacement, the new part is capitalised and the carrying amount of the old one is written off to profit or loss.","es":""},"references":["REF.IAS40.69"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000110","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000003","tested_point":"VG.IAS40.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-gain-loss"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Lorvane measures its investment property at fair value. It sells a property for {sale_price}, with {disposal_costs} of selling costs. The carrying amount at the date of disposal, equal to the latest fair value recognised, is {carrying_amount}. Calculate the net disposal proceeds and the gain or loss on disposal.","es":""},"explanation":{"fr":"","en":"Approach: the gain or loss on disposal is the difference between net disposal proceeds and the carrying amount, recognised in profit or loss (IAS 40, para. 69). Net proceeds = 3,350,000 − 50,000 = 3,300,000; gain = 3,300,000 − 3,200,000 = 100,000. Trap: calculating the result from historical cost whereas, under the fair value model, the carrying amount is the latest fair value. Rule to remember: The gain or loss on disposal is net disposal proceeds less carrying amount, recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Calculating the result from historical cost under the fair value model.","es":""},"format":"CALCULATION","placeholders":[{"id":"sale_price","value":"3350000","unit":"EUR"},{"id":"disposal_costs","value":"50000","unit":"EUR"},{"id":"carrying_amount","value":"3200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Sale price","es":""},"value":"3350000","unit":"EUR"},{"label":{"fr":"","en":"Selling costs","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"value":"3200000","unit":"EUR"}],"steps":[{"id":"NET_PROCEEDS","label":{"fr":"","en":"Net disposal proceeds","es":""},"answer":3300000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_PROCEEDS","meaning":{"fr":"","en":"Net disposal proceeds","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sale price","es":""},"value":3350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Selling costs","es":""},"value":50000,"unit":"EUR"}],"result":3300000,"unit":"EUR"},{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net disposal proceeds","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at the date of disposal","es":""},"value":3200000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"The gain or loss on disposal is net disposal proceeds less carrying amount, recognised in profit or loss.","es":""},"references":["REF.IAS40.69"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000111","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.GAIN_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS40.000003","tested_point":"VG.IAS40.000003","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-gain-loss"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"Mirane applies the cost model. It sells a building held as investment property whose original cost is {cost} and accumulated depreciation {accumulated_depreciation} (no impairment loss). The agreed price is {agreed_price}, and the agency fees borne by Mirane amount to {agency_fees}. What loss on disposal is recognised in profit or loss, and on what net proceeds?","es":""},"explanation":{"fr":"","en":"Approach: the gain or loss on disposal is the difference between net disposal proceeds and the carrying amount, recognised in profit or loss (IAS 40, para. 69). Carrying amount = 6,400,000 − 1,400,000 = 5,000,000; net proceeds = 4,650,000 − 70,000 = 4,580,000; loss = 5,000,000 − 4,580,000 = 420,000. Trap: comparing the proceeds with original cost rather than with the carrying amount. Rule to remember: The gain or loss on disposal compares net proceeds with the carrying amount, not with original cost.","es":""},"common_error":{"fr":"","en":"Comparing the sale price with original cost instead of the carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"6400000","unit":"EUR"},{"id":"accumulated_depreciation","value":"1400000","unit":"EUR"},{"id":"agreed_price","value":"4650000","unit":"EUR"},{"id":"agency_fees","value":"70000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Original cost","es":""},"value":"6400000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"1400000","unit":"EUR"},{"label":{"fr":"","en":"Agreed price","es":""},"value":"4650000","unit":"EUR"},{"label":{"fr":"","en":"Agency fees","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"NET_PROCEEDS","label":{"fr":"","en":"Net disposal proceeds","es":""},"answer":4580000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_ON_DISPOSAL","label":{"fr":"","en":"Loss on disposal","es":""},"answer":420000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_PROCEEDS","meaning":{"fr":"","en":"Net disposal proceeds","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Agreed price","es":""},"value":4650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Agency fees","es":""},"value":70000,"unit":"EUR"}],"result":4580000,"unit":"EUR"},{"step":"LOSS_ON_DISPOSAL","meaning":{"fr":"","en":"Loss on disposal","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Original cost","es":""},"value":6400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":1400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net disposal proceeds","es":""},"value":4580000,"unit":"EUR"}],"result":420000,"unit":"EUR"}],"rationale":{"fr":"","en":"The gain or loss on disposal compares net proceeds with the carrying amount, not with original cost.","es":""},"references":["REF.IAS40.69"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS40.000113","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.CONSIDERATION_IFRS15"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000113","tested_point":"QST.IAS40.000113","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-consideration"},"references":["IAS 40 §69"],"exercise":{"prompt":{"fr":"","en":"A management accountant comments on the gain or loss on disposal of an investment property. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. The gain or loss on disposal is the difference between net disposal proceeds and the carrying amount, recognised in profit or loss (IAS 40, para. 69). The first statement reasons on the gross price and ignores selling costs. Trap: leaving out costs or an adjusted consideration when calculating the result. Rule to remember: The gain or loss on disposal is calculated on net disposal proceeds, after costs, and recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Ignoring selling costs when calculating the result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The gain or loss on disposal is the difference between net disposal proceeds and the carrying amount.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the result is the difference between net disposal proceeds and the carrying amount (IAS 40, para. 69). It is not the error. Rule to remember: The gain or loss on disposal is calculated on net disposal proceeds, after costs, and recognised in profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"\"The gain or loss on disposal is recognised in profit or loss.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the gain or loss on disposal is recognised in profit or loss (IAS 40, para. 69). It is not the error. Rule to remember: The gain or loss on disposal is calculated on net disposal proceeds, after costs, and recognised in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"\"Selling costs are ignored: the result is the sale price less the carrying amount.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"Net disposal proceeds are understood after deducting selling costs.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: net proceeds are calculated after deducting selling costs (IAS 40, para. 69). It is not the error. Rule to remember: The gain or loss on disposal is calculated on net disposal proceeds, after costs, and recognised in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000114","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.CONSIDERATION_IFRS15"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000114","tested_point":"QST.IAS40.000114","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-consideration"},"references":["IAS 40 §69","IAS 40 §70"],"exercise":{"prompt":{"fr":"","en":"Ostrane sells an investment property. The price of {deferred_price} is payable in one year, which is a significant financing component (teaching assumption); the annual discount rate is {rate}. Selling costs amount to {disposal_costs} and the carrying amount of the property is {carrying_amount}. Calculate the net disposal proceeds and the gain or loss on disposal.","es":""},"explanation":{"fr":"","en":"Approach: the consideration for the disposal is measured under the IFRS 15 transaction price rules (IAS 40, para. 70); here, it is discounted: 2,200,000 / 1.10 = 2,000,000. Net proceeds = 2,000,000 − 40,000 = 1,960,000. The gain or loss on disposal is the difference between net proceeds and the carrying amount (IAS 40, para. 69): 1,960,000 − 1,900,000 = 60,000. Trap: using the nominal price of 2,200,000 without taking the payment delay into account. Rule to remember: The gain or loss on disposal is calculated on net proceeds, the consideration being measured under the transaction price rules.","es":""},"common_error":{"fr":"","en":"Ignoring deferred consideration in calculating disposal proceeds.","es":""},"format":"CALCULATION","placeholders":[{"id":"deferred_price","value":"2200000","unit":"EUR"},{"id":"rate","value":"10","unit":"PERCENT"},{"id":"disposal_costs","value":"40000","unit":"EUR"},{"id":"carrying_amount","value":"1900000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Price payable in one year","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Annual discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Selling costs","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the property","es":""},"value":"1900000","unit":"EUR"}],"steps":[{"id":"NET_PROCEEDS","label":{"fr":"","en":"Net disposal proceeds","es":""},"answer":1960000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net disposal proceeds","es":""},"value":1960000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the property","es":""},"value":1900000,"unit":"EUR"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"The gain or loss on disposal is the difference between net proceeds and the carrying amount (IAS 40, para. 69): 1,960,000 − 1,900,000 = 60,000.","es":""}}],"rationale":{"fr":"","en":"The gain or loss on disposal is calculated on net proceeds, the consideration being measured under the transaction price rules.","es":""},"references":["REF.IAS40.69","REF.IAS40.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000116","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.RETAINED_LIABILITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000116","tested_point":"QST.IAS40.000116","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-retained"},"references":["IAS 40 §71"],"exercise":{"prompt":{"fr":"","en":"An obligation that remains after the disposal of an investment property, for example a guarantee given to the buyer, disappears automatically on derecognition of the property.","es":""},"explanation":{"fr":"","en":"Liabilities retained after a disposal are dealt with under the applicable standards (IAS 40, para. 71): derecognising the property does not extinguish an obligation the entity retains. Approach: identify the obligations that remain, then measure them under the standard that concerns them. Trap: ignoring an obligation retained after the disposal. Rule to remember: An obligation retained after disposal is dealt with under the applicable standards, independently of the derecognition of the property.","es":""},"common_error":{"fr":"","en":"Ignoring an obligation retained after the disposal.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000117","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.RETAINED_LIABILITIES"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000117","tested_point":"QST.IAS40.000117","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-retained"},"references":["IAS 40 §71"],"exercise":{"prompt":{"fr":"","en":"Quirane sells an investment property and undertakes to guarantee the buyer against structural defects for two years. The property is derecognised at the date of disposal (case facts). What does it do with its guarantee commitment?","es":""},"explanation":{"fr":"","en":"Liabilities retained after a disposal are dealt with under the applicable standards (IAS 40, para. 71). The two-year guarantee given to the buyer remains after the property is derecognised: Quirane measures it under the standard governing provisions and liabilities. Approach: identify the retained commitment, then measure it separately from the gain or loss on disposal. Trap: ignoring an obligation retained after the disposal. Rule to remember: A guarantee retained after disposal is a liability dealt with under the applicable standards, separately from the derecognition of the property.","es":""},"common_error":{"fr":"","en":"Ignoring an obligation retained after the disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It deals with it under the standard applicable to provisions and liabilities, independently of the derecognition of the property.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It ignores it, since the property has been derecognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Ignoring the commitment is the typical error: derecognising the property does not extinguish a retained obligation, dealt with under the applicable standards (IAS 40, para. 71). Rule to remember: A guarantee retained after disposal is a liability dealt with under the applicable standards, separately from the derecognition of the property.","es":""}},{"id":"C","text":{"fr":"","en":"It adds it to the carrying amount of the property before calculating the gain or loss on disposal, with no further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"The commitment is not to be confused with the carrying amount of the property: it is a retained liability, dealt with under the applicable standards (IAS 40, para. 71). Rule to remember: A guarantee retained after disposal is a liability dealt with under the applicable standards, separately from the derecognition of the property.","es":""}},{"id":"D","text":{"fr":"","en":"It shifts it to the buyer, who becomes solely responsible as soon as the sale is made.","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer of responsibility is not automatic: as long as the entity retains the obligation, it deals with it under the applicable standards (IAS 40, para. 71). Rule to remember: A guarantee retained after disposal is a liability dealt with under the applicable standards, separately from the derecognition of the property.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000118","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.THIRD_PARTY_COMPENSATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000118","tested_point":"QST.IAS40.000118","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-compensation"},"references":["IAS 40 §72"],"exercise":{"prompt":{"fr":"","en":"An investment property is damaged by a third party, which must pay compensation. When is the compensation recognised in profit or loss?","es":""},"explanation":{"fr":"","en":"Compensation received from third parties for investment property that was impaired, lost or given up is recognised in profit or loss when it becomes receivable (IAS 40, para. 72). Approach: find the point at which the entitlement to compensation becomes receivable. Trap: recognising the compensation before it is receivable. Rule to remember: Third-party compensation is recognised in profit or loss when it becomes receivable.","es":""},"common_error":{"fr":"","en":"Recognising the compensation before it is receivable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as the damage occurs, whatever the actual entitlement to compensation.","es":""},"correct":false,"feedback":{"fr":"","en":"The damage alone is not enough: compensation is recognised in profit or loss only when it becomes receivable (IAS 40, para. 72). Rule to remember: Third-party compensation is recognised in profit or loss when it becomes receivable.","es":""}},{"id":"B","text":{"fr":"","en":"At the end of the following period, whether or not it is receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"The end of a period does not replace the criterion: compensation is recognised in profit or loss when it becomes receivable (IAS 40, para. 72). Rule to remember: Third-party compensation is recognised in profit or loss when it becomes receivable.","es":""}},{"id":"C","text":{"fr":"","en":"When it becomes receivable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On rebuilding the property, whatever amount is already receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"Rebuilding the property is not the triggering event: compensation is recognised in profit or loss when it becomes receivable (IAS 40, para. 72). Rule to remember: Third-party compensation is recognised in profit or loss when it becomes receivable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000119","standard_id":"IAS40","concept_ids":["IAS40.DISPOSAL.THIRD_PARTY_COMPENSATION"],"dimension":"CALCULATION","context":"V1_QST.IAS40.000119","tested_point":"QST.IAS40.000119","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000010","section_id":"rule-compensation"},"references":["IAS 40 §72","IAS 40 §73"],"exercise":{"prompt":{"fr":"","en":"A fire caused by a contractor destroys an investment property of Rovane, carried at {related_carrying_amount} and derecognised. The contractor's insurer acknowledges owing compensation of {compensation_receivable}, which became receivable during the period (case facts). Calculate the compensation income recognised and the net effect on profit or loss, the loss on the property being recognised separately.","es":""},"explanation":{"fr":"","en":"Approach: third-party compensation is recognised in profit or loss when it becomes receivable (IAS 40, para. 72), and separate events (loss of the property, compensation) are accounted for separately (IAS 40, para. 73). Compensation income = 600,000; loss on the property = 450,000; net effect = 600,000 − 450,000 = 150,000. Trap: netting the two items before recognising them. Rule to remember: Third-party compensation and the loss on the property are separate events, recognised separately in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising the compensation net of the loss instead of the two separate events.","es":""},"format":"CALCULATION","placeholders":[{"id":"compensation_receivable","value":"600000","unit":"EUR"},{"id":"related_carrying_amount","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Compensation that became receivable","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the destroyed property","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"COMPENSATION_INCOME","label":{"fr":"","en":"Compensation income recognised","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"NET_EFFECT_ON_PROFIT","label":{"fr":"","en":"Net effect on profit or loss","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_EFFECT_ON_PROFIT","meaning":{"fr":"","en":"Net effect on profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Compensation that became receivable","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the destroyed property","es":""},"value":450000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"Third-party compensation and the loss on the property are separate events, recognised separately in profit or loss.","es":""},"references":["REF.IAS40.72","REF.IAS40.73"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000121","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.IFRS16_ADDITIONAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000121","tested_point":"QST.IAS40.000121","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-leases-disc"},"references":["IAS 40 §74"],"exercise":{"prompt":{"fr":"","en":"An entity holds right-of-use assets meeting the definition of investment property. Which statement about disclosures is correct?","es":""},"explanation":{"fr":"","en":"When a right-of-use asset is held as investment property, additional lease-related disclosures are to be provided (IAS 40, para. 74). Approach: identify the property held through a right-of-use asset, then complete the disclosures. Trap: omitting the lessee's disclosures on leased property. Rule to remember: A right-of-use asset held as investment property calls for additional lease-related disclosures.","es":""},"common_error":{"fr":"","en":"Omitting the lessee's disclosures on leased property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It has no additional disclosure to provide, IFRS 16 having no link with these assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Saying no additional disclosure is required is the typical error: a right-of-use asset held as investment property calls for lease-related disclosures (IAS 40, para. 74). Rule to remember: A right-of-use asset held as investment property calls for additional lease-related disclosures.","es":""}},{"id":"B","text":{"fr":"","en":"It provides only the amount of rent paid, with no other information.","es":""},"correct":false,"feedback":{"fr":"","en":"A single rent amount is not enough: the additional lease-related disclosures are broader (IAS 40, para. 74). Rule to remember: A right-of-use asset held as investment property calls for additional lease-related disclosures.","es":""}},{"id":"C","text":{"fr":"","en":"It provides the lessor's disclosures only, never those of the lessee.","es":""},"correct":false,"feedback":{"fr":"","en":"Holding a right-of-use asset puts the entity in the position of lessee: the lease-related disclosures also concern that role (IAS 40, para. 74). Rule to remember: A right-of-use asset held as investment property calls for additional lease-related disclosures.","es":""}},{"id":"D","text":{"fr":"","en":"It provides additional lease-related disclosures for these right-of-use assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000122","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.MODEL_AND_CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000122","tested_point":"QST.IAS40.000122","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-general"},"references":["IAS 40 §75"],"exercise":{"prompt":{"fr":"","en":"Which of these items form part of the general disclosures on investment property? (More than one answer possible.)","es":""},"explanation":{"fr":"","en":"The general disclosures cover the model adopted, the classification criteria, the use of an independent valuer, income and expenses, restrictions and contractual obligations (IAS 40, para. 75). Here, the model, the classification criteria and the use of an independent valuer are part of them; tenants' identity and the list of properties the entity occupies are not. Approach: match each item against the list. Trap: settling for the carrying amount alone. Rule to remember: The general disclosures cover the model, the classification criteria, the use of an independent valuer and other listed items.","es":""},"common_error":{"fr":"","en":"Disclosing only the carrying amount.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The model adopted, fair value or cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The name of each tenant and the amount of each individual rent.","es":""},"correct":false,"feedback":{"fr":"","en":"The individual identity of tenants is not on the list of general disclosures: these cover the model, the criteria, the use of an independent valuer, income and expenses, restrictions and contractual obligations (IAS 40, para. 75). Rule to remember: The general disclosures cover the model, the classification criteria, the use of an independent valuer and other listed items.","es":""}},{"id":"C","text":{"fr":"","en":"The classification criteria where classification is difficult.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The list of properties the entity occupies for its own needs.","es":""},"correct":false,"feedback":{"fr":"","en":"Properties the entity occupies for its own needs fall under IAS 16, not the information on investment property: the list covers the model, criteria, the use of an independent valuer, income and expenses, restrictions and obligations (IAS 40, para. 75). Rule to remember: The general disclosures cover the model, the classification criteria, the use of an independent valuer and other listed items.","es":""}},{"id":"E","text":{"fr":"","en":"The extent to which fair value is based on a qualified independent valuer.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000123","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.FV_MODEL_RECONCILIATION"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000123","tested_point":"QST.IAS40.000123","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-recon"},"references":["IAS 40 §76"],"exercise":{"prompt":{"fr":"","en":"For its reconciliation of carrying amounts under the fair value model, Tolvane notes: opening 10,000,000; acquisitions 2,000,000; disposals (at carrying amount) 1,500,000; net fair value gain 800,000; transfers from owner-occupied property 400,000 (case data). What closing carrying amount does the reconciliation show?","es":""},"explanation":{"fr":"","en":"The reconciliation of opening and closing carrying amounts presents acquisitions, fair value changes, transfers and disposals (IAS 40, para. 76). Closing = 10,000,000 + 2,000,000 − 1,500,000 + 800,000 + 400,000 = 11,700,000. Approach: start from the opening amount, add the inflows, deduct the outflows. Trap: forgetting the transfers or the disposals in the reconciliation. Rule to remember: The reconciliation runs from opening to closing, presenting acquisitions, fair value changes, transfers and disposals.","es":""},"common_error":{"fr":"","en":"Forgetting the transfers in the reconciliation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"11,300,000, leaving transfers out of the reconciliation.","es":""},"correct":false,"feedback":{"fr":"","en":"Forgetting the transfers is the typical error in the reconciliation: they are among the movements to present (IAS 40, para. 76); the correct total is 11,700,000. Rule to remember: The reconciliation runs from opening to closing, presenting acquisitions, fair value changes, transfers and disposals.","es":""}},{"id":"B","text":{"fr":"","en":"11,700,000, opening + acquisitions − disposals + fair value change + transfers.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"13,200,000, not deducting the disposals.","es":""},"correct":false,"feedback":{"fr":"","en":"Disposals reduce the carrying amount and appear in the reconciliation (IAS 40, para. 76): omitting them gives 13,200,000 instead of 11,700,000. Rule to remember: The reconciliation runs from opening to closing, presenting acquisitions, fair value changes, transfers and disposals.","es":""}},{"id":"D","text":{"fr":"","en":"12,500,000, counting the fair value gain twice.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value gain appears only once in the reconciliation (IAS 40, para. 76): counting it twice gives 12,500,000 instead of 11,700,000. Rule to remember: The reconciliation runs from opening to closing, presenting acquisitions, fair value changes, transfers and disposals.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000124","standard_id":"IAS40","concept_ids":["IAS40.DISCLOSURE.COST_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000124","tested_point":"QST.IAS40.000124","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000011","section_id":"rule-cost-disc"},"references":["IAS 40 §79"],"exercise":{"prompt":{"fr":"","en":"An entity that applies the cost model does not have to disclose the fair value of its investment property in the notes.","es":""},"explanation":{"fr":"","en":"Under the cost model, the entity discloses, among other things, the depreciation methods, the useful lives, a reconciliation and the fair value of investment property in the notes (IAS 40, para. 79). Approach: list the disclosures specific to the cost model. Trap: not disclosing fair value under the cost model. Rule to remember: Under the cost model, the fair value of investment property is disclosed in the notes.","es":""},"common_error":{"fr":"","en":"Not disclosing fair value under the cost model.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000126","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.TRANSFERS_2016","IAS40.TRANSITION.EFFECTIVE_DATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000126","tested_point":"QST.IAS40.000126","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-2016"},"references":["IAS 40 §85G"],"exercise":{"prompt":{"fr":"","en":"From which periods does the 2016 amendment on transfers apply?","es":""},"explanation":{"fr":"","en":"The 2016 amendment on transfers applies to annual periods beginning on or after 1 January 2018, early application being permitted (IAS 40, para. 85G). Approach: distinguish the issue date of the amendment from its effective date. Trap: applying the former closed list of evidence of a change in use. Rule to remember: The 2016 amendment on transfers applies to annual periods beginning on or after 1 January 2018, early application permitted.","es":""},"common_error":{"fr":"","en":"Applying the former closed list of evidence of a change in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To annual periods beginning on or after 1 January 2016, with no early application.","es":""},"correct":false,"feedback":{"fr":"","en":"The date of the amendment (2016) is not its application date: that is 1 January 2018, with early application permitted (IAS 40, para. 85G). Rule to remember: The 2016 amendment on transfers applies to annual periods beginning on or after 1 January 2018, early application permitted.","es":""}},{"id":"B","text":{"fr":"","en":"To annual periods beginning on or after 1 January 2018, early application being permitted.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To annual periods beginning on or after 1 January 2019 only, with no early application.","es":""},"correct":false,"feedback":{"fr":"","en":"1 January 2019 is later than the application date: the amendment applies from 1 January 2018, early application being permitted (IAS 40, para. 85G). Rule to remember: The 2016 amendment on transfers applies to annual periods beginning on or after 1 January 2018, early application permitted.","es":""}},{"id":"D","text":{"fr":"","en":"To annual periods beginning on or after 1 January 2020, with mandatory retrospective application.","es":""},"correct":false,"feedback":{"fr":"","en":"1 January 2020 is too late: the amendment applies from 1 January 2018, early application being permitted (IAS 40, para. 85G). Rule to remember: The 2016 amendment on transfers applies to annual periods beginning on or after 1 January 2018, early application permitted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000127","standard_id":"IAS40","concept_ids":["IAS40.TRANSITION.EFFECTIVE_DATES"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000127","tested_point":"QST.IAS40.000127","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000012","section_id":"rule-effective"},"references":["IAS 40 §85"],"exercise":{"prompt":{"fr":"","en":"A compliance officer comments on the effective dates of amendments to IAS 40. Which of the officer's statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the principle of effective dates: each amendment has its own date, and application before that date is possible only if permitted, and is then disclosed (IAS 40, para. 85). The incorrect statement is the one that accepts undisclosed early application: it ignores the obligation to disclose early application. Trap: applying an amendment before its effective date without disclosing it. Rule to remember: An amendment applies from its effective date; early application, if permitted, is disclosed.","es":""},"common_error":{"fr":"","en":"Applying an amendment before its effective date without disclosing it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"Each amendment specifies its own effective date.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: effective dates are specified amendment by amendment (IAS 40, para. 85). It is not the error. Rule to remember: An amendment applies from its effective date; early application, if permitted, is disclosed.","es":""}},{"id":"B","text":{"fr":"","en":"\"An amendment applies to periods beginning on or after its effective date.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: an amendment applies from its effective date (IAS 40, para. 85). It is not the error. Rule to remember: An amendment applies from its effective date; early application, if permitted, is disclosed.","es":""}},{"id":"C","text":{"fr":"","en":"\"An amendment may be applied before its effective date without the entity saying so.\"","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"\"Where early application is permitted, the entity discloses it.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: early application is disclosed (IAS 40, para. 85). It is not the error. Rule to remember: An amendment applies from its effective date; early application, if permitted, is disclosed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000128","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS16_BASELINE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000128","tested_point":"QST.IAS40.000128","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias16"},"references":["IAS 40 §5","IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"What is the link between IAS 40 and IAS 16?","es":""},"explanation":{"fr":"","en":"IAS 40 defines investment property in contrast to owner-occupied property (IAS 40, para. 5); its cost model refers to the IAS 16 cost model (depreciation and impairment) (IAS 40, para. 56). Approach: classify the property, then apply the standard that corresponds to it. Trap: applying the IAS 16 revaluation to an investment property. Rule to remember: Owner-occupied property falls under IAS 16; the IAS 40 cost model builds on the IAS 16 one.","es":""},"common_error":{"fr":"","en":"Applying the IAS 16 revaluation to an investment property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 40 replaces IAS 16 for all of the entity's properties, occupied or not.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 40 does not replace IAS 16 for owner-occupied property, which its definition distinguishes from investment property (IAS 40, para. 5). Rule to remember: Owner-occupied property falls under IAS 16; the IAS 40 cost model builds on the IAS 16 one.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 16 applies to investment property measured at fair value, IAS 40 only to property at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: the IAS 40 cost model refers to IAS 16 (IAS 40, para. 56), whereas the fair value model is specific to IAS 40. Rule to remember: Owner-occupied property falls under IAS 16; the IAS 40 cost model builds on the IAS 16 one.","es":""}},{"id":"C","text":{"fr":"","en":"The two standards are independent: neither refers to the other.","es":""},"correct":false,"feedback":{"fr":"","en":"The two standards are linked: IAS 40 distinguishes owner-occupied property (IAS 40, para. 5) and its cost model refers to IAS 16 (IAS 40, para. 56). Rule to remember: Owner-occupied property falls under IAS 16; the IAS 40 cost model builds on the IAS 16 one.","es":""}},{"id":"D","text":{"fr":"","en":"Owner-occupied property falls under IAS 16, and the IAS 40 cost model refers to the IAS 16 one.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000129","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IFRS13_FAIR_VALUE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000129","tested_point":"QST.IAS40.000129","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ifrs13"},"references":["IAS 40 §33","IAS 40 §35"],"exercise":{"prompt":{"fr":"","en":"Urvane applies the fair value model to its investment property. Which combination correctly describes how fair value is determined and how its change is recognised?","es":""},"explanation":{"fr":"","en":"Under the fair value model, the property is measured at fair value after initial recognition, without depreciation (IAS 40, para. 33); this fair value reflects market conditions at the reporting date and is determined under IFRS 13. The change is recognised in profit or loss (IAS 40, para. 35). Approach: associate with each model its measurement basis and the treatment of its changes. Trap: applying the IAS 16 revaluation model to an investment property. Rule to remember: Under the fair value model, fair value is determined under IFRS 13 and its change is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Applying IFRS 13 measurement without taking the IAS 40 treatment into account.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value determined under IFRS 13 on the basis of the market at the reporting date, change recognised in profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Entity-specific fair value set by IAS 40 alone, change recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is not an entity-specific value: it reflects the market at the reporting date (IFRS 13), and its change goes to profit or loss (IAS 40, para. 35). Rule to remember: Under the fair value model, fair value is determined under IFRS 13 and its change is recognised in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"Fair value determined under IFRS 13, change recognised in other comprehensive income like a revaluation.","es":""},"correct":false,"feedback":{"fr":"","en":"Determination under IFRS 13 is correct, but the change in fair value of investment property is recognised in profit or loss, not as a revaluation (IAS 40, para. 35). Rule to remember: Under the fair value model, fair value is determined under IFRS 13 and its change is recognised in profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"Cost less depreciation, change in value recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This combination describes the cost model. The fair value model measures at fair value without depreciation (IAS 40, para. 33). Rule to remember: Under the fair value model, fair value is determined under IFRS 13 and its change is recognised in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000130","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS36_COST_MODEL_IMPAIRMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000130","tested_point":"QST.IAS40.000130","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias36"},"references":["IAS 40 §56"],"exercise":{"prompt":{"fr":"","en":"An investment property measured under the fair value model is tested for impairment under IAS 36 every year.","es":""},"explanation":{"fr":"","en":"Impairment belongs to the IAS 16 cost model (depreciation and impairment) (IAS 40, para. 56); a property measured at fair value is brought to fair value at each reporting date, which makes an impairment test pointless. Approach: link the impairment test to the cost model. Trap: testing a property measured at fair value for impairment. Rule to remember: The IAS 36 impairment test concerns the cost model, not the fair value model.","es":""},"common_error":{"fr":"","en":"Testing a property measured at fair value for impairment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000131","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS12_DEFERRED_TAX_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000131","tested_point":"QST.IAS40.000131","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ias12"},"references":["IAS 40 §33"],"exercise":{"prompt":{"fr":"","en":"An unrealised fair value gain on an investment property is recognised in profit or loss. Which standard deals with the deferred tax that may result?","es":""},"explanation":{"fr":"","en":"Under the fair value model, the property is measured at fair value and the change is recognised in profit or loss (IAS 40, para. 33); the deferred tax that may result falls under IAS 12, not IAS 40. Approach: separate the recognition of the change (IAS 40) from its tax effect (IAS 12). Trap: ignoring deferred tax on an unrealised gain. Rule to remember: The fair value change falls under IAS 40; the resulting deferred tax falls under IAS 12.","es":""},"common_error":{"fr":"","en":"Ignoring deferred tax on an unrealised gain.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 40 itself, which sets the applicable deferred tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 40 deals with measurement at fair value (IAS 40, para. 33), but does not set the deferred tax rate: that falls under IAS 12. Rule to remember: The fair value change falls under IAS 40; the resulting deferred tax falls under IAS 12.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 16, because the property is a tangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 16 does not deal with deferred tax on the fair value change of an investment property: that falls under IAS 12, the change itself falling under IAS 40 (IAS 40, para. 33). Rule to remember: The fair value change falls under IAS 40; the resulting deferred tax falls under IAS 12.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 12, which governs deferred tax on fair value changes.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No standard: deferred tax never concerns unrealised gains.","es":""},"correct":false,"feedback":{"fr":"","en":"Ignoring deferred tax on an unrealised gain is the typical error: it falls under IAS 12, the change being recognised under IAS 40 (IAS 40, para. 33). Rule to remember: The fair value change falls under IAS 40; the resulting deferred tax falls under IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000132","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IFRS16_RIGHT_OF_USE"],"dimension":"ANALYSIS","context":"V1_QST.IAS40.000132","tested_point":"QST.IAS40.000132","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-ifrs16"},"references":["IAS 40 §5"],"exercise":{"prompt":{"fr":"","en":"An accounting director comments on the right-of-use asset held as investment property. Which of the statements is incorrect?","es":""},"explanation":{"fr":"","en":"Approach: test each statement against the rule. The definition of investment property includes property held through a right-of-use asset (IAS 40, para. 5) and the initial measurement of the right follows IFRS 16, the original wording on finance leases (IAS 17) being obsolete (IFRS 16; IAS 40, para. 5). Only statement B applies the old wording. Trap: applying the IAS 17 wording. Rule to remember: A right-of-use asset held as investment property is initially measured under IFRS 16, not under the original IAS 17 wording.","es":""},"common_error":{"fr":"","en":"Applying the IAS 17 wording to a right-of-use asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"\"The definition of investment property includes right-of-use assets held as such.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the definition includes land or buildings held through a right-of-use asset (IAS 40, para. 5). It is not the error. Rule to remember: A right-of-use asset held as investment property is initially measured under IFRS 16, not under the original IAS 17 wording.","es":""}},{"id":"B","text":{"fr":"","en":"\"The initial measurement of the right still follows the original wording of IAS 40 on finance leases under IAS 17.\"","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"\"The initial measurement of the right-of-use asset follows IFRS 16.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the initial measurement of the right-of-use asset follows IFRS 16 (IFRS 16; IAS 40, para. 5). It is not the error. Rule to remember: A right-of-use asset held as investment property is initially measured under IFRS 16, not under the original IAS 17 wording.","es":""}},{"id":"D","text":{"fr":"","en":"\"A right-of-use asset meeting the definition falls within the scope of IAS 40.\"","es":""},"correct":false,"feedback":{"fr":"","en":"Correct statement: the definition includes right-of-use assets, which therefore fall within the scope (IAS 40, para. 5). It is not the error. Rule to remember: A right-of-use asset held as investment property is initially measured under IFRS 16, not under the original IAS 17 wording.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000133","standard_id":"IAS40","concept_ids":["IAS40.INTERACTIONS.IAS2_IAS16_IFRS15"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000133","tested_point":"QST.IAS40.000133","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000013","section_id":"rule-neighbours"},"references":["IAS 40 §9"],"exercise":{"prompt":{"fr":"","en":"Valvane holds three properties: (1) apartments built to be sold in the ordinary course of its business, (2) a building in which it carries on its business, (3) a building leased to third parties. Which allocation of standards is consistent?","es":""},"explanation":{"fr":"","en":"Inventory intended for sale in the ordinary course of business and owner-occupied property are not investment property (IAS 40, para. 9): the apartments are inventories (IAS 2); the occupied building falls under IAS 16; the building leased to third parties falls under IAS 40. Approach: classify each property by its purpose of holding. Trap: classifying property intended for ordinary sale as investment property. Rule to remember: The purpose of holding allocates properties: inventory (IAS 2), owner-occupied property (IAS 16) or investment property (IAS 40).","es":""},"common_error":{"fr":"","en":"Classifying property intended for ordinary sale as investment property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"(1) IAS 40; (2) IAS 16; (3) IAS 2.","es":""},"correct":false,"feedback":{"fr":"","en":"This allocation reverses the cases: property intended for ordinary sale is inventory and not investment property (IAS 40), and the leased building falls under IAS 40. Rule to remember: The purpose of holding allocates properties: inventory (IAS 2), owner-occupied property (IAS 16) or investment property (IAS 40).","es":""}},{"id":"B","text":{"fr":"","en":"(1) IAS 16; (2) IAS 40; (3) IAS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"Owner-occupied property falls under IAS 16 and the leased building under IAS 40; property intended for ordinary sale is not investment property (IAS 40). Rule to remember: The purpose of holding allocates properties: inventory (IAS 2), owner-occupied property (IAS 16) or investment property (IAS 40).","es":""}},{"id":"C","text":{"fr":"","en":"(1) IAS 40; (2) IAS 40; (3) IAS 40, all being real estate.","es":""},"correct":false,"feedback":{"fr":"","en":"Not all real estate is investment property: inventory intended for ordinary sale and owner-occupied property are excluded (IAS 40). Rule to remember: The purpose of holding allocates properties: inventory (IAS 2), owner-occupied property (IAS 16) or investment property (IAS 40).","es":""}},{"id":"D","text":{"fr":"","en":"(1) inventory (IAS 2); (2) IAS 16; (3) IAS 40.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000134","standard_id":"IAS40","concept_ids":["IAS40.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS40.000134","tested_point":"QST.IAS40.000134","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000001","section_id":"rule-scope"},"references":["IAS 40 §2"],"exercise":{"prompt":{"fr":"","en":"IAS 40 deals only with the measurement of investment property; its recognition and the related disclosures fall under other Standards.","es":""},"explanation":{"fr":"","en":"The scope of IAS 40 covers the recognition, measurement and disclosure of investment property (IAS 40, para. 2). Trap: reducing the Standard to the choice of measurement model. Rule to remember: recognition, measurement and disclosure, in one Standard.","es":""},"common_error":{"fr":"","en":"Reducing IAS 40 to the choice between the cost model and the fair value model.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS40.000135","standard_id":"IAS40","concept_ids":["IAS40.INITIAL.EXCHANGE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000135","tested_point":"QST.IAS40.000135","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000005","section_id":"rule-exchange"},"references":["IAS 40 §29","IAS 40 §27"],"exercise":{"prompt":{"fr":"","en":"Draco SA gives up land with a carrying amount of 600,000 in exchange for a building that it will hold as investment property (case facts). The exchange has commercial substance. The fair value of the land, 900,000, is reliably measurable; that of the building received, estimated at 950,000, is not more clearly evident than that of the land (data and judgement given by the case). What initial cost does Draco use for the building?","es":""},"explanation":{"fr":"","en":"Investment property acquired in exchange for other assets is measured at fair value unless the exchange lacks commercial substance or neither fair value is reliably measurable (IAS 40, para. 27). If the fair value of either asset is reliable, the fair value of the asset given up is used to measure cost unless the fair value of the asset received is more clearly evident (IAS 40, para. 29). Here, commercial substance, the reliability of the land's fair value and the absence of clearer evidence for the building are data and a judgement given by the case: cost = 900,000. Trap: using the carrying amount given up or, automatically, the fair value received. Rule to remember: fair value of the asset given up, unless that of the asset received is more clearly evident.","es":""},"common_error":{"fr":"","en":"Automatically using the fair value of the asset received in an exchange.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"600,000, the carrying amount of the land given up.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the asset given up is used only if the exchange lacks commercial substance or if no fair value is reliable (IAS 40, para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"900,000, the fair value of the asset given up.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"950,000, since the fair value of the asset received always prevails.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of the asset received prevails only if it is more clearly evident, which the case rules out (IAS 40, para. 29).","es":""}},{"id":"D","text":{"fr":"","en":"925,000, the average of the two fair values.","es":""},"correct":false,"feedback":{"fr":"","en":"The Standard provides for no average: cost is measured by a single fair value, here that of the asset given up (IAS 40, para. 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS40.000136","standard_id":"IAS40","concept_ids":["IAS40.TRANSFERS.CHANGE_IN_USE"],"dimension":"APPLICATION","context":"V1_QST.IAS40.000136","tested_point":"QST.IAS40.000136","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS40","lesson_id":"LS.IAS40.000009","section_id":"rule-change"},"references":["IAS 40 §58"],"exercise":{"prompt":{"fr":"","en":"Cygnus SA holds two investment properties (case facts). The board decides to sell the Rive property as it stands, without development, and to redevelop the Parc property, which will continue to be leased to third parties after the works. How are these properties classified in the meantime?","es":""},"explanation":{"fr":"","en":"When the entity decides to dispose of an investment property without development, the property continues to be treated as investment property until it is derecognised, with no transfer to inventories; when it redevelops an existing investment property for continued future use as investment property, the property is not reclassified as owner-occupied property during the works (IAS 40, para. 58). The board's decisions are case data. Trap: treating a decision to sell or works as a change in use. Rule to remember: no change in use, no transfer.","es":""},"common_error":{"fr":"","en":"Transferring an investment property to inventories as soon as its sale is decided.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both remain investment property: Rive until it is derecognised, Parc during the works.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Rive is transferred to inventories as soon as the sale is decided; Parc remains investment property during the works.","es":""},"correct":false,"feedback":{"fr":"","en":"A decision to dispose without development does not transfer the property to inventories: it remains investment property until it is derecognised (IAS 40, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"Rive remains investment property; Parc is reclassified as owner-occupied property during the works.","es":""},"correct":false,"feedback":{"fr":"","en":"Redevelopment for continued use as investment property does not lead to reclassification as owner-occupied property (IAS 40, para. 58).","es":""}},{"id":"D","text":{"fr":"","en":"Both are transferred to inventories, since the board's decision changes their use.","es":""},"correct":false,"feedback":{"fr":"","en":"Neither property changes use within the meaning of the Standard: neither the decision to sell without development nor the works justify a transfer (IAS 40, para. 58).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS40.000001":"IAS 40: purpose, scope and exclusions — Understand: what is IAS 40 for?","LX.IAS40.000002":"IAS 40: purpose, scope and exclusions — The rule: the scope","LX.IAS40.000003":"IAS 40: purpose, scope and exclusions — Simple example: three assets of Verdane","LX.IAS40.000004":"IAS 40: purpose, scope and exclusions — Scope exclusions","LX.IAS40.000005":"IAS 40: purpose, scope and exclusions — The rule: the scope","LX.IAS40.000006":"IAS 40: purpose, scope and exclusions — Points of attention","LX.IAS40.000007":"Investment property: definition, terms and examples — The rule: the definition of investment property","LX.IAS40.000008":"Investment property: definition, terms and examples — Understand: the question 'why do we hold this property?'","LX.IAS40.000009":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","LX.IAS40.000010":"Investment property: definition, terms and examples — The defined terms to know","LX.IAS40.000011":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","LX.IAS40.000012":"Investment property: definition, terms and examples — How to classify: three questions in order","LX.IAS40.000013":"Investment property: definition, terms and examples — Points of attention","LX.IAS40.000014":"Investment property: definition, terms and examples — Professional judgement: documenting the holding purpose","LX.IAS40.000015":"Investment property: definition, terms and examples — The defined terms to know","LX.IAS40.000016":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: dual-use property","LX.IAS40.000017":"Classifying a mixed property: separable parts, ancillary services, judgement — Numeric example: splitting a separable building","LX.IAS40.000018":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: dual-use property","LX.IAS40.000019":"Classifying a mixed property: separable parts, ancillary services, judgement — When the parts are inseparable: the insignificant occupied portion","LX.IAS40.000020":"Classifying a mixed property: separable parts, ancillary services, judgement — When the parts are inseparable: the insignificant occupied portion","LX.IAS40.000021":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: ancillary services provided to occupants","LX.IAS40.000022":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: ancillary services provided to occupants","LX.IAS40.000023":"Classifying a mixed property: separable parts, ancillary services, judgement — Professional judgement: passive owner or operator?","LX.IAS40.000024":"Classifying a mixed property: separable parts, ancillary services, judgement — Professional judgement: passive owner or operator?","LX.IAS40.000025":"Classifying a mixed property: separable parts, ancillary services, judgement — Defining and disclosing your classification criteria","LX.IAS40.000026":"Classifying a mixed property: separable parts, ancillary services, judgement — Property leased within the group","LX.IAS40.000027":"Recognising investment property: criteria and subsequent costs — The rule: two cumulative conditions","LX.IAS40.000028":"Recognising investment property: criteria and subsequent costs — The rule: subsequent costs","LX.IAS40.000029":"Recognising investment property: criteria and subsequent costs — The rule: subsequent costs","LX.IAS40.000030":"Recognising investment property: criteria and subsequent costs — Journal entries: replacement and servicing","LX.IAS40.000031":"Recognising investment property: criteria and subsequent costs — Numeric example: replacing the lifts","LX.IAS40.000032":"Recognising investment property: criteria and subsequent costs — Points of attention","LX.IAS40.000033":"Recognising investment property: criteria and subsequent costs — Professional judgement: servicing or replacement?","LX.IAS40.000034":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","LX.IAS40.000035":"Initial measurement: the entry cost of an investment property — Numeric example: building the entry cost","LX.IAS40.000036":"Initial measurement: the entry cost of an investment property — Journal entry: the Marnelle acquisition","LX.IAS40.000037":"Initial measurement: the entry cost of an investment property — The rule: what does not enter the cost","LX.IAS40.000038":"Initial measurement: the entry cost of an investment property — The rule: what does not enter the cost","LX.IAS40.000039":"Initial measurement: the entry cost of an investment property — Deferred payment","LX.IAS40.000040":"Initial measurement: the entry cost of an investment property — Acquisition by exchange of assets","LX.IAS40.000041":"Initial measurement: the entry cost of an investment property — Property held under a lease","LX.IAS40.000042":"Initial measurement: the entry cost of an investment property — Property held under a lease","LX.IAS40.000043":"Initial measurement: the entry cost of an investment property — Professional judgement: 'directly attributable'?","LX.IAS40.000044":"The policy choice: fair value or cost — The rule: a policy choice, applied to all properties","LX.IAS40.000045":"The policy choice: fair value or cost — Comparing the two models","LX.IAS40.000046":"The policy choice: fair value or cost — Numeric example: the same property under both models","LX.IAS40.000047":"The policy choice: fair value or cost — The rule: a policy choice, applied to all properties","LX.IAS40.000048":"The policy choice: fair value or cost — Changing the accounting policy","LX.IAS40.000049":"The policy choice: fair value or cost — Changing the accounting policy","LX.IAS40.000050":"The policy choice: fair value or cost — Investments backing linked liabilities","LX.IAS40.000051":"The policy choice: fair value or cost — Professional judgement: justifying the chosen model","LX.IAS40.000052":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","LX.IAS40.000053":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","LX.IAS40.000054":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Numeric example: two reporting dates of Trentan","LX.IAS40.000055":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Journal entries: recording the fair value change","LX.IAS40.000056":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Journal entries: recording the fair value change","LX.IAS40.000057":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — At each reporting date: four steps","LX.IAS40.000058":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — What is the fair value of a property?","LX.IAS40.000059":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — What is the fair value of a property?","LX.IAS40.000060":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Existing leases in the valuation","LX.IAS40.000061":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Avoiding double counting","LX.IAS40.000062":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — When fair value is not reliably determinable","LX.IAS40.000063":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — When fair value is not reliably determinable","LX.IAS40.000064":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Professional judgement: expert valuation and the cost exception","LX.IAS40.000065":"The cost model: depreciating and testing for impairment — The rule: the IAS 16 cost model","LX.IAS40.000066":"The cost model: depreciating and testing for impairment — Numeric example: depreciating Gardane's building","LX.IAS40.000067":"The cost model: depreciating and testing for impairment — Journal entries: depreciation and impairment","LX.IAS40.000068":"The cost model: depreciating and testing for impairment — Implementation: land, building, charge, test","LX.IAS40.000069":"The cost model: depreciating and testing for impairment — Numeric example: depreciating Gardane's building","LX.IAS40.000070":"The cost model: depreciating and testing for impairment — Points of attention","LX.IAS40.000071":"The cost model: depreciating and testing for impairment — Property held for sale","LX.IAS40.000072":"The cost model: depreciating and testing for impairment — Cost model and right-of-use assets","LX.IAS40.000073":"The cost model: depreciating and testing for impairment — Professional judgement: useful life and method","LX.IAS40.000074":"Transfers: change in use, evidence and transfer value — The rule: no transfer without a change in use","LX.IAS40.000075":"Transfers: change in use, evidence and transfer value — The evidence of the change, not intent","LX.IAS40.000076":"Transfers: change in use, evidence and transfer value — The evidence of the change, not intent","LX.IAS40.000077":"Transfers: change in use, evidence and transfer value — Under the cost model: the transfer changes no amounts","LX.IAS40.000078":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","LX.IAS40.000079":"Transfers: change in use, evidence and transfer value — Numeric example: an owner-occupied property becomes investment property","LX.IAS40.000080":"Transfers: change in use, evidence and transfer value — Journal entry: the Novane transfer","LX.IAS40.000081":"Transfers: change in use, evidence and transfer value — Numeric example: inventory becomes investment property","LX.IAS40.000082":"Transfers: change in use, evidence and transfer value — From investment property to owner-occupied property","LX.IAS40.000083":"Transfers: change in use, evidence and transfer value — From investment property to inventory","LX.IAS40.000084":"Transfers: change in use, evidence and transfer value — Points of attention","LX.IAS40.000085":"Transfers: change in use, evidence and transfer value — Professional judgement: dating and proving the change in use","LX.IAS40.000086":"Disposals: derecognising and recognising the gain or loss — The rule: derecognise on disposal or permanent withdrawal","LX.IAS40.000087":"Disposals: derecognising and recognising the gain or loss — The date of disposal: the transfer of control","LX.IAS40.000088":"Disposals: derecognising and recognising the gain or loss — Numeric example: two disposals, two models","LX.IAS40.000089":"Disposals: derecognising and recognising the gain or loss — Journal entries: the disposal under each model","LX.IAS40.000090":"Disposals: derecognising and recognising the gain or loss — Numeric example: two disposals, two models","LX.IAS40.000091":"Disposals: derecognising and recognising the gain or loss — Replaced parts","LX.IAS40.000092":"Disposals: derecognising and recognising the gain or loss — The consideration on disposal","LX.IAS40.000093":"Disposals: derecognising and recognising the gain or loss — Liabilities retained after disposal","LX.IAS40.000094":"Disposals: derecognising and recognising the gain or loss — Compensation from third parties","LX.IAS40.000095":"Disposals: derecognising and recognising the gain or loss — Compensation from third parties","LX.IAS40.000096":"Disposals: derecognising and recognising the gain or loss — Professional judgement: control date and variable consideration","LX.IAS40.000097":"Disclosures on investment property — General disclosures: model, criteria, methods","LX.IAS40.000098":"Disclosures on investment property — Under the cost model: methods, lives and fair value in the notes","LX.IAS40.000099":"Disclosures on investment property — Numeric example: Brévane's reconciliation","LX.IAS40.000100":"Disclosures on investment property — Under the fair value model: the reconciliation","LX.IAS40.000101":"Disclosures on investment property — Additional disclosures for right-of-use assets held as investment property","LX.IAS40.000102":"Disclosures on investment property — Points of attention","LX.IAS40.000103":"Disclosures on investment property — Professional judgement: extent and quality of disclosures","LX.IAS40.000104":"Transition and effective dates — The 2016 amendment on transfers","LX.IAS40.000105":"Transition and effective dates — The 2016 amendment on transfers","LX.IAS40.000106":"Transition and effective dates — The general transitional provisions of IAS 40","LX.IAS40.000107":"Transition and effective dates — The effective dates","LX.IAS40.000108":"Transition and effective dates — Professional judgement: which version for which period?","LX.IAS40.000109":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 16: the reference standard for the cost model and owner-occupied property","LX.IAS40.000110":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — Inventory, owner-occupied, disposal: which standard for which property?","LX.IAS40.000111":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IFRS 13: fair value is measured by another standard","LX.IAS40.000112":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 36: impairment, only under the cost model","LX.IAS40.000113":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 12: deferred tax on fair value changes","LX.IAS40.000114":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 12: deferred tax on fair value changes","LX.IAS40.000115":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IFRS 16: the right-of-use asset held as investment property","LX.IAS40.000116":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — Points of attention","LX.IAS40.000117":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — Professional judgement: choosing the standard that answers","LX.IAS40.000118":"IAS 40: purpose, scope and exclusions — The rule: the scope","LX.IAS40.000119":"Transition and effective dates — The 2016 amendment on transfers","QST.IAS40.000001":"IAS 40: purpose, scope and exclusions — Understand: what is IAS 40 for?","QST.IAS40.000002":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IFRS 16: the right-of-use asset held as investment property","QST.IAS40.000003":"IAS 40: purpose, scope and exclusions — Scope exclusions","QST.IAS40.000004":"Investment property: definition, terms and examples — The rule: the definition of investment property","QST.IAS40.000005":"Investment property: definition, terms and examples — The rule: the definition of investment property","QST.IAS40.000006":"Investment property: definition, terms and examples — The defined terms to know","QST.IAS40.000007":"Investment property: definition, terms and examples — The defined terms to know","QST.IAS40.000008":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","QST.IAS40.000009":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","QST.IAS40.000010":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","QST.IAS40.000011":"Investment property: definition, terms and examples — Examples: what is, and what is not, investment property","QST.IAS40.000012":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: dual-use property","QST.IAS40.000013":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: dual-use property","QST.IAS40.000015":"Classifying a mixed property: separable parts, ancillary services, judgement — When the parts are inseparable: the insignificant occupied portion","QST.IAS40.000016":"Classifying a mixed property: separable parts, ancillary services, judgement — When the parts are inseparable: the insignificant occupied portion","QST.IAS40.000017":"Classifying a mixed property: separable parts, ancillary services, judgement — When the parts are inseparable: the insignificant occupied portion","QST.IAS40.000018":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: ancillary services provided to occupants","QST.IAS40.000019":"Classifying a mixed property: separable parts, ancillary services, judgement — The rule: ancillary services provided to occupants","QST.IAS40.000021":"Classifying a mixed property: separable parts, ancillary services, judgement — Professional judgement: passive owner or operator?","QST.IAS40.000023":"Classifying a mixed property: separable parts, ancillary services, judgement — Defining and disclosing your classification criteria","QST.IAS40.000025":"Classifying a mixed property: separable parts, ancillary services, judgement — Property leased within the group","QST.IAS40.000026":"Recognising investment property: criteria and subsequent costs — The rule: two cumulative conditions","QST.IAS40.000027":"Recognising investment property: criteria and subsequent costs — The rule: two cumulative conditions","QST.IAS40.000028":"Recognising investment property: criteria and subsequent costs — The rule: subsequent costs","QST.IAS40.000029":"Recognising investment property: criteria and subsequent costs — The rule: subsequent costs","QST.IAS40.000030":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","QST.IAS40.000031":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","QST.IAS40.000033":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","QST.IAS40.000034":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","QST.IAS40.000035":"Initial measurement: the entry cost of an investment property — The rule: the cost of an acquired property","QST.IAS40.000036":"Initial measurement: the entry cost of an investment property — The rule: what does not enter the cost","QST.IAS40.000037":"Initial measurement: the entry cost of an investment property — The rule: what does not enter the cost","QST.IAS40.000039":"Initial measurement: the entry cost of an investment property — Deferred payment","QST.IAS40.000040":"Initial measurement: the entry cost of an investment property — Deferred payment","QST.IAS40.000042":"Initial measurement: the entry cost of an investment property — Property held under a lease","QST.IAS40.000043":"Initial measurement: the entry cost of an investment property — Property held under a lease","QST.IAS40.000044":"Initial measurement: the entry cost of an investment property — Property held under a lease","QST.IAS40.000045":"Initial measurement: the entry cost of an investment property — Acquisition by exchange of assets","QST.IAS40.000046":"Initial measurement: the entry cost of an investment property — Acquisition by exchange of assets","QST.IAS40.000047":"Initial measurement: the entry cost of an investment property — Acquisition by exchange of assets","QST.IAS40.000048":"The policy choice: fair value or cost — The rule: a policy choice, applied to all properties","QST.IAS40.000049":"The policy choice: fair value or cost — Changing the accounting policy","QST.IAS40.000050":"The policy choice: fair value or cost — Investments backing linked liabilities","QST.IAS40.000051":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","QST.IAS40.000053":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","QST.IAS40.000054":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","QST.IAS40.000055":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — The rule: fair value, no depreciation, change in profit or loss","QST.IAS40.000057":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — What is the fair value of a property?","QST.IAS40.000059":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — What is the fair value of a property?","QST.IAS40.000060":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — What is the fair value of a property?","QST.IAS40.000061":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Existing leases in the valuation","QST.IAS40.000062":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Existing leases in the valuation","QST.IAS40.000064":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Avoiding double counting","QST.IAS40.000065":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Avoiding double counting","QST.IAS40.000066":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — Avoiding double counting","QST.IAS40.000067":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — When fair value is not reliably determinable","QST.IAS40.000068":"The fair value model: measuring at the reporting date and recognising the change in profit or loss — When fair value is not reliably determinable","QST.IAS40.000070":"The cost model: depreciating and testing for impairment — The rule: the IAS 16 cost model","QST.IAS40.000071":"The cost model: depreciating and testing for impairment — The rule: the IAS 16 cost model","QST.IAS40.000073":"The cost model: depreciating and testing for impairment — Property held for sale","QST.IAS40.000074":"The cost model: depreciating and testing for impairment — Property held for sale","QST.IAS40.000075":"The cost model: depreciating and testing for impairment — Cost model and right-of-use assets","QST.IAS40.000076":"The cost model: depreciating and testing for impairment — Cost model and right-of-use assets","QST.IAS40.000077":"Transfers: change in use, evidence and transfer value — The rule: no transfer without a change in use","QST.IAS40.000078":"Transfers: change in use, evidence and transfer value — The rule: no transfer without a change in use","QST.IAS40.000079":"Transfers: change in use, evidence and transfer value — The rule: no transfer without a change in use","QST.IAS40.000080":"Transfers: change in use, evidence and transfer value — The evidence of the change, not intent","QST.IAS40.000081":"Transfers: change in use, evidence and transfer value — The evidence of the change, not intent","QST.IAS40.000083":"Transfers: change in use, evidence and transfer value — Under the cost model: the transfer changes no amounts","QST.IAS40.000085":"Transfers: change in use, evidence and transfer value — Under the cost model: the transfer changes no amounts","QST.IAS40.000086":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000087":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000089":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000090":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000091":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000093":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000094":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000095":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000097":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000098":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000099":"Transfers: change in use, evidence and transfer value — Under the fair value model: four directions, four treatments","QST.IAS40.000102":"Disposals: derecognising and recognising the gain or loss — The rule: derecognise on disposal or permanent withdrawal","QST.IAS40.000103":"Disposals: derecognising and recognising the gain or loss — The rule: derecognise on disposal or permanent withdrawal","QST.IAS40.000104":"Disposals: derecognising and recognising the gain or loss — The rule: derecognise on disposal or permanent withdrawal","QST.IAS40.000105":"Disposals: derecognising and recognising the gain or loss — The date of disposal: the transfer of control","QST.IAS40.000106":"Disposals: derecognising and recognising the gain or loss — The date of disposal: the transfer of control","QST.IAS40.000107":"Disposals: derecognising and recognising the gain or loss — Replaced parts","QST.IAS40.000108":"Disposals: derecognising and recognising the gain or loss — The rule: gain or loss on disposal = net proceeds − carrying amount","QST.IAS40.000110":"Disposals: derecognising and recognising the gain or loss — The rule: gain or loss on disposal = net proceeds − carrying amount","QST.IAS40.000111":"Disposals: derecognising and recognising the gain or loss — The rule: gain or loss on disposal = net proceeds − carrying amount","QST.IAS40.000113":"Disposals: derecognising and recognising the gain or loss — The consideration on disposal","QST.IAS40.000114":"Disposals: derecognising and recognising the gain or loss — The consideration on disposal","QST.IAS40.000116":"Disposals: derecognising and recognising the gain or loss — Liabilities retained after disposal","QST.IAS40.000117":"Disposals: derecognising and recognising the gain or loss — Liabilities retained after disposal","QST.IAS40.000118":"Disposals: derecognising and recognising the gain or loss — Compensation from third parties","QST.IAS40.000119":"Disposals: derecognising and recognising the gain or loss — Compensation from third parties","QST.IAS40.000121":"Disclosures on investment property — Additional disclosures for right-of-use assets held as investment property","QST.IAS40.000122":"Disclosures on investment property — General disclosures: model, criteria, methods","QST.IAS40.000123":"Disclosures on investment property — Under the fair value model: the reconciliation","QST.IAS40.000124":"Disclosures on investment property — Under the cost model: methods, lives and fair value in the notes","QST.IAS40.000126":"Transition and effective dates — The 2016 amendment on transfers","QST.IAS40.000127":"Transition and effective dates — The effective dates","QST.IAS40.000128":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 16: the reference standard for the cost model and owner-occupied property","QST.IAS40.000129":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IFRS 13: fair value is measured by another standard","QST.IAS40.000130":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 36: impairment, only under the cost model","QST.IAS40.000131":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IAS 12: deferred tax on fair value changes","QST.IAS40.000132":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — IFRS 16: the right-of-use asset held as investment property","QST.IAS40.000133":"At the boundaries: IAS 16, IFRS 13, IAS 36, IAS 12, IFRS 16, IAS 2 and IFRS 15 — Inventory, owner-occupied, disposal: which standard for which property?","QST.IAS40.000134":"IAS 40: purpose, scope and exclusions — The rule: the scope","QST.IAS40.000135":"Initial measurement: the entry cost of an investment property — Acquisition by exchange of assets","QST.IAS40.000136":"Transfers: change in use, evidence and transfer value — The rule: no transfer without a change in use"}}