Which of the Following Is Not Part of the AASB

question 27

Multiple Choice

Which of the following is not part of the AASB 140 proposals to account for investment properties?

• A) After initial recognition, investment properties can be measured by either the cost model or the fair value model
• B) If the fair value model is chosen, changes to fair value must be recognised as gains or losses when they occur
• C) If the cost model is chosen then, all of a company's investment properties must be measured in accordance with AASB 116
• D) Different investment properties can be valued using different cost models

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent and salaries.

Break-Even Point

The financial analysis term where total costs and total revenues are equal, resulting in no net loss or gain for the business.

Contribution Margin

Contribution margin is the amount remaining from sales revenue after variable expenses are deducted, showing how much contributes to covering fixed costs and profit.

Fixed Costs

Costs that remain constant regardless of a company's operational levels, including rent, wages, and insurance fees.