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Please help me work out this problem Problem 5.2 Before 2005,...

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Accounting

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Problem 5.2 Before 2005, the hotel properties of Shangri-La Asia Limited were classified as investment properties, which are stated at annual professional valuations at the balance sheet date. After the introduction of IAS 40 as HKAS 40 in Hong Kong, Shangri-La Asia Limited announced on 17 December 2004 that its hotel properties "will no longer be accounted for as investment properties" from 2005. It would adopt the following accounting policies retroactively . The underlying buildings and integral plant and machinery will be stated at cost . The underlying leasehold land will be stated at cost and subject to annul Evaluate the financial reporting implication on these changes in the accounting policy less accumulated depreciation and impairment; The underlying freehold land will be stated at cost less impairment: and operating lease rental charge (amortisation of land cost)

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