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:

Regulatory Policies

Regulatory policies are rules established by governments or regulatory bodies to guide the operation of businesses and organizations, with the aim of protecting public welfare.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, representing efficiency.

Opportunity Cost

The cost of choosing one alternative over another, represented by the benefit foregone from not choosing the next best alternative.

Inefficient

Referring to a lack of effectiveness, not achieving maximum productivity; resulting in a waste of time, energy, or material.