for Large Banks considers: • The number and amount of loans in the institution’s assessment area • The geographic distribution of loans, including to LMI areas The subject matter for discussion on audit readiness this week is Investment Property. The substantial revisions of the CRA in 1994 added the Investment Test for larger depository institutions. This change must be supported by evidence. This site uses cookies. The problems usually involve calculations using quantitative tools of investment analysis, analysis of various types of securities, Large Bank CRA Performance Criteria (continued) The . In the past, CRA INVESTMENT HANDBOOK Federal Reserve Bank of San Francisco 5 T he CRA Investment Handbook brings together resources and information for investors at banks who are, in part, motivated by the Community Reinvestment Act of 1977 (CRA). This web page is designed to support "Investment Valuation", the third edition. An investment property can be a long-term endeavor or a short-term investment. IAS 40 – Investment Property Quiz Free IFRS Quizzes IAS 40 – Investment Property Quiz ) , () ) Previous Lesson. In mathematical notation this set of computations can be summarized as: 1 $681 x 8% = $54 $735 2 735 x 8% = 59 794 3 794 x 8% = 64 858 4 858 x … You can navigate the site by either going to individual chapters and getting supporting material by chapter, or by going to the supporting material directly. The publisher is John Wiley and Sons. investment as the sum of the annual cash flows discounted for any delay in receiving them, minus the investment outlay. may be subsequently measured using a cost model or fair value model, with changes in the fair value under the fair value model being recognised in profit or loss. Lending Test . IAS 40 applies to the accounting for property (land and/or buildings) held to earn rentals or for capital appreciation (or both). opportunities to test the knowledge of the audience, which are in the form of questions and more involved problems. To find out more, see our Cookies Policy Terms & Conditions Articles. Investment properties are initially measured at cost and, with some exceptions. Select the investments you currently own : Bonds and/or bond funds 3 Stocks and/or stock funds 6 International securities and/ or international funds 8 Example: You now own stock funds. investment losing value 0 Equally concerned about my investment losing or gaining value 4 Most concerned about my investment gaining value 8 5. Property Limitations (Reference) Entities purchasing investment properties are limited to a financial interest in seven rental dwelling units. This item falls within the scope of IAS 40 Investment property. References: For additional information on investment property requirements, see HUD 4155.1 4.B.4, and the dwelling unit limitation for investors, see HUD 4155.1 4.B.4.d. The types of question include open ended questions as well as multiple choice questions. In commercial real estate investment, the amount derived from discounting future cash flows of lease and rental payments plus capital appreciation represents the value of the: (a) asset (b) equity (c) liability 17. 16. Back to Course Next Lesson. With the latter, investors will often engage in flipping, where real estate is … The type of bank that is exclusively owned by its members is a: (a) savings and loan bank (b) commercial bank (c) mutual bank 18. To conclude if a property has changed use there should be an assessment of whether the property meets the definition. • Investment Test • Service Test. 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