Increases in Fair Value Over Cost in Relation to Land

question 8

Multiple Choice

Increases in fair value over cost in relation to land used for agricultural purposes is recognised in equity when the land is:

• A) an investment property measured at fair value and accounted for under IAS 40
• B) an investment property measured at cost and accounted for under IAS 40
• C) not an investment property, is measured at fair value and accounted for under IAS 16
• D) not an investment property, is measured at cost and accounted for under IAS 16

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Definitions:

Cause-and-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect) in a given context.

Descriptive

Pertaining to the detailed description of characteristics, behaviors, or the setting of an event without imposing any interpretations or judgments.

Correlational Research

A method of research that examines the relationship between two or more variables to determine if a change in one is associated with a change in the other(s).

Cause-and-Effect Relationship

A connection between two events where one is the result of the other or others.