4.

Costs in the condition used like surveying grading filling draining and
clearing then kasama din
5. Prior to date of acquisition like mga unpaid tax assumed by the buyer.
- ito kasi eh yung real property tax. Pag before mo maacquire yung
property eh costs yun iaano pero pag after mo yun inano expense na
yun.

6. Special assessment for local government maintained

7. Option paid to acquire land -ang example nito ay reservation fee. Kasi
may mga land na additional fee kumbaga kasama sya sa total costs of
land hindi dun sa purchase price kasi magkaiba pa to
8. Costs incurred to induce tenants to vacate premises and costs orf
relocating and reconstructing property belonging to others
-for example yung mga squatter pag nirelocate sila yung paglilipatan din
tas ngayon makakasama sya sa costs of land meaning capitalizable.

9. Initial estimate of restoration costs for which the entity has a present
obligation. - meaning kunware may mga kailangang irestore sa land tehn
kasama sya sa costs of land

10. Additional land improvement that have indefinite useful lofe then
kasam asya sa costs of land pero pag definite sya na improvement then
di sya kasama sa costs of land kasi nagdedepreciate sya hindi sya pwede
isama sa costs of land since ang land nagiinitiate sya such as costs of
draining , clearing, and filling , surveying, subdividng and other
permanent improvements

Difference of Option and Earnest Money

1. Paid by an investor for an option contract based upon security of the
asset and the time left until the option expires
-Reservation fee
2. Earnest Money
-ito ang downpayment, part ng downpayment and part sya ng purchase
price.

land improvement
1. Enhancements-which have definite useful life

2. Initial measurement includes all expenditures necessary to make the

improvements to make the improvements ready for their intended use.
3. Maintenance and replacement are the responsibility of the company
4. Depreciate- Companies expense the cost of land improvements over
their useful lives.

Very important charateristic ng land improvement:

Rule: Pag ang land improvement ay hindi kasama dun sa blue print ng ng
building then, maituturing syang land improvement pero pag kasama sya
sa blue print ng building, then, hindi sya ituturin na land improvement
but improvement sya ng building.

Examples of land improvement examples

1. Private driveways
2. Walkways
3. Parking lots
4. Fences
5. Waterways
6. Landscape mga garden ganun

LAND ACCOUNT (STATEMENT of Financial Position Classification)

 Land used as a plant site------ PPE

 Land held for a currently undetermined use-----Investment Property
 Land held for long term appreciation-----Investment Property
 Land held as Site for an Investment Property-----Investment Property
 Land leased out under operating lease----Investment Property
 Land leased out under finance lease----Not reported in the books of
the company kasi mapapasasama sya dun sa libro ng leleased
 Land held definitely as a future plant---PPE
 Land held for sale in teh ordinary course of business---Inventory like
mga subdivision like ayala lands.
 Land held for sale under PFRS 5----classified as NCA held for sale,
presented as current asset
 Land related to agricultural activity-----Investment Property or PPE

COST OF PURCHASED BUILDING

-same lang ng Cost of land

Cost of Self-Constructed Building

1. Insurance costs and safety inspection fees
2. Costs of temporary structures built during construction like mga
temporary housing nung mga construction workers saka yung mga
fences specially if magtatayo sila ng building sa mataong luar to protect
civilians from teh falling debrit.
3. Interest on borrowings made to finance construction (borrowing
costs) module 4

Building Improvements
Rule 1: Pag purchased ang building lahat ng costs na naincur subsequent
or after ng occupancy ng purchased building

Rule 2: Pag self-constructed ang building eto yung mga nagastos

subsequent of after ng pagcoconstruct ng building or completion ng
construction ng building

Examples of building improvements like costs of elevator, escalator

Then ventilation, plumbing and lighting systems
SAKA PATI MGA IMMOVABLE FIXTURES like partitions

Costs of purchased equipment

1. Purchase Price-inlucding necessary costs such as broker’s commission

and non refundable taxes
2. Freight handling charges and insurance-on the equipment while in
transit
3. Cost of Necessary special foundations or platform- dito yung mga
customization and special foundations para matayo yung machine and
mainstall yung machine
4. Assembling and installation costs
5. Costs of testing conducting trial runs like for example pag gusto
makita kung maayos ba ang flow ng machine or yung Paggana.
6. Initial estimate and decommisioning restoration costs for which the
entity has a present obligation.
-before edecommision nagakkaroon ng estimation kukuhanin ang
present value for example eh yung sa affter 10 years magkano ang