Tanoso owns the following properties as at 31 December 2015:
Property: Fair value (GH¢million)
Land with future use undetermined 3.2
Factory rented to Tanoso’s subsidiary under an operating lease 2.4
10 floor office building (fair value is equal per floor)
with 3 floors used as the subsidiary’s head office and seven floors
rented to third parties under an operating lease. 15.0
Empty building held for capital appreciation, but not leased out. 4.1
Tanoso’s accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model.
Required:
In accordance with IAS 40 Investment Property calculate the carrying amount to be recognised as investment property in Tanoso’s consolidated financial statements as at 31 December 2015. (3 marks)
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