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, increases in fair value over cost of non-investment property, such as agricultural land, should be recognized in equity when the property is measured at fair value. Therefore, option C is the best choice as it refers to agricultural land that is not an investment property but is measured at fair value. Options A, B, and D are incorrect as they either refer to investment properties measured at cost or do not specify that the agricultural land is measured at fair value.

Increases in Fair Value Over Cost in Relation to Land