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

Question

Quizplus · Accepted Answer

According to AASB 116 / IAS 16, when land used for agricultural purposes is not an investment property and is measured at fair value, increases in fair value over cost are recognized in equity. Option A and B are incorrect because they both involve measuring the land as investment property, which is not applicable in this situation. Option D is incorrect because it involves measuring the land at cost, not fair value.

Increases in Fair Value Over Cost in Relation to Land