- 1 Marks
Question
Oladiya ventures is in the business of real estate and property management. In the current year, the business constructed several buildings which have been placed for sale.
Which of the following standards will be appropriate for the recognition of the newly constructed buildings?
A. IAS2 – Inventory
B. IAS16 – Property, Plant and Equipment
C. IAS40 – Investment Property
D. IAS37 – Provision, Contingent Liability and Contingent Asset
E. IFRS 15 – Revenue from Contract with Customers
Answer
A. IAS2 – Inventory
Explanation:
Since the buildings have been placed for sale, they are considered inventory, and IAS2 applies to the accounting treatment for inventories. IAS16 and IAS40 would apply if the buildings were held for use or investment purposes, but not for sale.
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