Nickita is the chief engineer at Mocha Liquid.

GLOBAL MEDIA ELEMENTS Characters Joe David Professor is dressed in formals. He has an iphone. Raina Kapoor Raina Kapoor is the second Finance Controller in Mocha Liquid. Her designation is Controller of North America. She wears formals, and she is 40-45 years. Nickita Nickita is the chief engineer at Mocha Liquid. Building Knowledge Check Questions Mocha Junction This is a two block cityscape which incorporates not only the headquarter building, but also the Mocha Liquid Coffee Company plant, and the coffee shop. The headquarter building is initially in focus. There will be individual items within the locations that need to be created for the activities. They are itemized in the storyboard in respective scenes. NA All the options appearing for every knowledge check question should be alphabetically presented. GLOBAL PROGRAMMING ELEMENTS Animation instructions Interactivity instructions to view the book Interactivity instructions to view summary table icon Interactivity instructions to click Professor s icon Standard knowledge check animation for the course. Standard dialog animation will take place. The Next button should be clickable only when the screen is completely visited by the learner. The Professor icon and the Book icon on the screen are only optional clicks, and should not be a checkpoint for enabling the Next button in the course. Refer to the activities for specific instructions. On respective scenes, place an icon for the IFRS book on the screen. This icon will be always be available on screen for the learner. Learners can click the icon whenever they want to view the content from the book. From the start of the course, there will be a global summary table icon, which will be present on all the screens. The professor icon will be activated on certain screens. 1

GLOBAL INSTRUCTIONAL DESIGN ELEMENTS Instructions Learner instructions for book click: Click the bottom corner of a page to turn it. Learner instructions for Back and Next arrow: Click the arrows to navigate within the content. Learner instruction to close any page or document: Click Close to continue. Usage of Back and Next Button Provide an internal Back and Next button if the required content is not covered in one screen. MODULE NUMBER 20 MODULE NAME INVESTMENT PROPERTY MODULE STRUCTURE Lesson Title Page Title Description and Page Reference in Storyboard Lesson 1: Overview Scene 1 Objectives This screen presents the course- level objectives. Page Number for the Course Scene 2 Objective and Scope of IAS 40 This screen will describe the objective and scope of IAS 40. It will also present the key concepts associated with IAS 40 Investment Property. Lesson 2: Investment Property Scene 3 What is Investment Property? This screen will cover the definition of It will provide examples of Mocha Liquid s property followed by accounting guidance for and non- Scene 3a Knowledge Check This is a knowledge check screen. Scene 4 Identifying Investment Property This screen will explain how to identify property and its accounting on the basis of fair value model and under cost model. Scene 5 Leased Property This screen will explain the lessor s and lessee s standpoints as it relates to Investment Property. 2

Scene 6 Scene 7 Screen 8 Leased Property (Continued) Other Types of Property Ancillary Services and Property Managed by Others This is a continuation of the previous screen. It will describe the similarities and differences between IFRS and U.S. GAAP as it relates to the initial and subsequent measurement of This screen will present a learner interaction the in form of a self check. Through this activity, learners will be asked to identify other types of This screen will describe the case of ancillary services and property managed by others with help of the Mocha Liquid example. Scene 9 Dual-Use Property This screen explains the points that should be considered while making decisions associated with dual-use- Lesson 3: Recognition and Measurement Scene 10 Introduction to Recognition and Measurement This screen will explain the fair value model and cost model. Scene 10a Knowledge Check This is a knowledge check screen. Lesson 4: Transfers and Disposals Scene 11 Transfers to or This screen will explain how transfers from Investment related to property are Property carried out. Scene 11a Knowledge CheckThis is a knowledge check screen. Scene 12 Redevelopment and Disposals This screen will explain the concepts associated with redevelopment and disposal. Lesson 5: Presentation and Disclosures Scene 13 Presentation and This screen will discuss presentation Disclosures of and disclosure requirements Investment associated with property Property under IFRS. Scene 13a Knowledge CheckThis is a knowledge check screen. 3

Scene 14 Summary This screen will summarize the objectives and will briefly address how each objective was covered in the course. Course Screen No. 1 Screen Type Lesson Title Scene Title Content Event No. Animation and Interactivity Overview Objectives $$New Page$$ Seat-time: 2 minutes Text on Screen (TOS) Audio Narration Media and Programming Instructions IAS 40 Investment #Joe#: Hi. Welcome to Joe s dialog addressing the Property the course on IAS 40 Investment Property. In this course, we will learner. Show the front-view of the Mocha Liquid headquarter learn about the accounting building. treatment for property under IFRS and the related disclosure New Environment: Recreation corner area requirements. Show a recreation corner To understand area. This setting should have property under IFRS, we will meet Raina Kapoor, the Controller of North the following: a) LCD screen b) Sofa America and Nickita the c) Coffee Cup Chief Engineer at Mocha Liquid. They will be d) Other suitable elements illustrating some of Mocha Liquid s properties. Through the examples they discuss, Show the Professor sitting in the recreation area, close to wheree the LCD is displayed. you will learn about IAS 40 On the LCD, course name will Investment Property under be written. Please note you IFRS and how to account need not zoom-in. for it. M20_S1_E1_Joe.mp3 4

#Joe#: Before we begin, let s review what we are going to learn today. Joe s dialog addressing the learner Joe will click the remote. Objectives will then flash on the LCD screen. Zoom into the LCD screen to show the objectives. Show the following items on the table in front of the Professor: a) a cup of coffee b) four flash cards c) a folder M20_S1_E2_Joe.mp3 5

By the end of this course, you should be able to: to: Definee Identify types of Describe the recognition and measurement criteria for Explain the recognition and measurement criteria for property under IFRS versus U.S. GAAP. Describe how to account for transfers to and from property, plant, and equipment; and inventory, and also disposals of Describe the related disclosures. Click Close to continue. #Joe#: By the end of this course, you should be able Joe s dialog addressing the learner. Provide a Close button on the Define LCD screen. Identify types of UI: Click Close to continue. Describe the Note to Art: The objectives recognition and should appear with square measurement bullets only. criteria for M20_S1_E3_Joe.mp3 Explain the M20_S1_E3_Joe.mp3_New recognition and measurement criteria for property under IFRS versus U.S. GAAP. Describe how to account for transfers to and from property, plant, and equipment; and also disposals of Describe the related disclosures. NA Professor Icon Click Text #Joe#: So, having set the objectives of the course, the next step is to understand the objective and scope of IAS 40 Investment Property. We also need to know what are the key differences and similarities between IFRS and U.S. GAAP as it relates to Let s have a look. Joe s dialog addressing the learner Joe will speak once the Close button for the objectives has been clicked. He should be sitting at the table as before, but the table in front of him should be only partially visible (about 20% visible). M20_S1_E4_Joe.mp3 6

By the end of this course, you should be able to: Definee Identify types of Describe the recognition and measurement criteria for Explain the recognition and measurement criteria for property under IFRS versus U.S. GAAP. Describe how to account for transfers to and from property, plant, and equipment; and inventory, and also disposals of Describe related disclosures. 7

Course Screen No. 2 $$New Page$$ Screen Type Lesson Title Animation and Interactivity Overview Scene Title Objective and Scope of IAS 40 Content Event No. Text on Screen (TOS) Audio Narration Media and Programming Instructions Click each flash card to #Joe#: I have made some Joe s dialog addressing the learn more. flash cards for you from the IFRS book. Each card will describe objective, scope, key principles, and definitions of IAS 40 Investment Property. Click each flash card to learn more. learner Same setting (recreation corner) The table should now be fully visible. On the table, show three cards. Once Joe has finished talking, zoom-in on the cards (show a top-view of the table with the cards). These cards will be clickable. On clicking each card, associated content will be displayed. Flash card 1: Objective The objective of IAS 40 is #Joe#: The objective of to prescribe the IAS 40 is to prescribe the accounting treatment for accounting treatment for property and property, the related disclosure including recognition and requirements. measurement, and the related disclosure requirements. The Next button will be displayed (along with the audio) when the learner has seen the text for all flash cards. Joe s dialog in background Provide a Close button on the flash card. Once the Close button is clicked, a visited state of the card should appear. Alll the other cards should now be visible and clickable in any order, including the card just seen. M20_S2_E2_Joe.mp3 8

Flash card 2: Scope IAS 40 Investment Property applies in the following areas of property: Recognitionn Measurement Disclosure IAS 40 also applies to: Lessees - Measurement in a lessee s financial statementss of t property interests held under a lease accounted for as a finance lease. This includes t property interest held under an operating lease, which is accounted for as a finance lease under IAS 17. Lessors - Measurement in a lessor s financial statementss of t property provided to a lessee under operating lease. #Joe#: IAS 40 Investment Property is applied in the recognition, measurement, and disclosure of Among other things, this Standard also applies to the measurement in a lessee s financial statements of property interests held under a lease accounted for as a finance lease. This includes property interest held under an operating lease, which is accounted for as a finance lease under IAS 17. We will look at some examples later in the course. This standard also applies to the measurement in a lessor s financial statements of property provided to a lessee under an operating lease. We will look at some examples later in the course. However, the Standard does not deal with matters covered in IAS 17 Leases with respect to the criteria and accounting treatment relating to operating leases and finance leases. Joe s dialog in background The bullet points should be displayed on the screen one by one in sync with the audio. Provide a Close button for the learner. Once the Close button is clicked, a visited state should appear on the card. All the other cards should now be visible and clickable in any order, including the card just seen. Note to Art: In this flash card, provide two small icons, one depicting the Lessees, and the second one depicting Lessors. Animate the content for each icon in sync with the audio. M20_S2_E3_Joe.mp3 M20_S2_E3_Joe.mp3_New [Textual reference: IAS 40.2-3] 9

Flash card 3: Definitions [Visual Reference 1] #Joe#: Carrying amount is the amount at which an asset is recognized in the statement of financial position. Cost is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognized in accordance with the specific requirements of other IFRSs. Joe s dialog in background [Textual Reference: IAS 40.5, and IAS 40.10 (dual use)] Note to Art: Need to discuss the visualss for this. M20_S2_E4_Joe.mp3 M20_S2_E4_Joe.mp3_New M20_S2_E4_Joe.mp3_New_A Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm s length transaction. goods or services or for administrative purposes. Visual Reference 1 Flash card 4: Key Principles 10

The key principles of IAS #Joe#: The key principles Joe s dialog in background 40 Investment Property of IAS 40 are as follows: standard are: Investment property is property held to earn rentals, or for capital appreciation, or both. An property is property held to earn rentals, or for capital appreciation, or both. The bullet points should be displayed on the screen one by one in sync with the audio. Provide a Close button for the learner. Once the Close Property interest held Property interest held by a button is clicked, a visited by a lessee under an lessee under an operating state should appear on the operating lease may lease may be classified and card. All the other cards be classified and accounted for as should now be visible and accounted for as property if, the clickable in any order, property if property meets the including the card just seen. the property meets the definition of property and the lesseee uses the fair value model definition of property, the lessee uses the fair value model to measure the asset, and the operating lease is When all the cards have been viewed, activate the Next button. Note to art: Use Back and to measure the asset, accounted for as if it were Next arrows in case the and the operating a finance lease. This content is not covered in one lease is accounted for classification alternative is screen. as if it were a finance available on a property-byproperty lease. This classification basis. However, once this classification [Textual Reference: IAS 40.10, 40..5, 40.6, 4.20] alternative is availablealternative is selected for on a property-byproperty one such property interest basis. However, once this classification held under an operating lease, all property classified as M20_S2_E6_Joe.mp3 M20_S2_E6_Joe.mp3_New alternative is selected property will be accounted for one such property for using the fair value interest held under an model. operating lease, all property classified as property will be accounted for using the fair value model. 11

NA #Joe#: Let's now look at some of the differences and similarities between IFRS and U.S. GAAP as it relates to property which we will also revisit throughout the course of our discussions today. Joe s dialog looking at the learner When the learner clicks the Close button in the previous event, zoom out of the flash card and show Joe addressing the learner. After he completes the audio, show Joe will point out towards the folder kept on his desk. Visual reference below. Note to Art: Use Back and Next arrows in case the content is not covered in one screen for the table. There should also be Close button on this page. Click Close to continue. [Textual Reference: IFRS Compared to U.S. GAAP, pg 108] M20_S2_E7_Joe.mp3 12

NA Joe#: Additionally, you can view similarities and differences between IFRS and U.S. GAAP as they relate to property at any point during this course by clicking this icon. Joe s dialog addressing the learner When the learner closes the comparison table in the previous event, play this dialog showing the Professor addressing the learner. In sync with the VO, click this icon, a mockup of the Summary icon should be shown on-screen. NA #Joe#: Let's now go to your workstation and talk in detail about Investment Property. Note to Programming: Skip this event if the leaner is taking the course for second time. M20_S2_E8_Joe.mp3 Joe s dialog looking at the learner This dialog should play when the learnerr closes the table. M20_S2_E9_Joe.mp3 13

Course Screen No. 3 Screen Type Lesson Title Scene Title Content Event No. Animation and Interactivity. Investment Property What is Investment Property? $$New Page$$ Text on Screen (TOS) Audio Narration Media and Programming Instructions #Joe#: Determining Joe s dialog addressing the Determining whether whether a property is an learner a property is an property property depends on its use rather The scene opens at the depends on its use rather than the type of entity that holds it. than the type of entity that holds it. Classification as learner s workstation. Show Joe sitting next to the learner workstation. On the soft board next to the workstation, show There is an accounting property is four photographs depicting policy choice for how the property will be measured. mandatory if the criteria for IAS 40 are met. However, there is an accounting policy choice Mocha Liquid. In the center of the screen, keep the computer. On the right of the computer, show a piece of Investment Property for how the property will paper folded and stuck to the Is Is Not be measured. notice board. This paper will A piece of land, later develop into a cutout A building or part of a Also, it is important to chart. building, or understand what Both land and building. property is andzoom in to the computer what it is not. Investment screen. As long as it is property property is a piece of land, held for: or building, or part of a Rental income, building, or both land and Capital appreciation, or building that is held to Both. earn rental income, or Property held for: held for capital M20 S3_E1_Joe.mp3 appreciation, or both. Use in the production Seat-time : 6 minutes or supply of goods or Note that an services, or for property is not a property administrative that is held for use in the purposes production or supply of Sale in the ordinary goods or services, or for course of business administrative purposes. Neither is it a property that is held for sale in the ordinary course of business. 14

If an entity has not #Joe#: You may be Joe s dialog in background determined that it will usethinking, what happens if the land as owner- or for occupied property an entity has not yet determined the use of the When the user clicks Next in short-term sale in the ordinary course of business, then the land would be regarded as held for capital property? Generally, if an entity, in this case say Mocha Liquid, has not the previous event the bullet point should be displayed on the computer screen in sync with the audio. appreciation determined that it will use [Textual Reference: IAS 40.8b] land as owner-occupied property or for short-term Under U.S. GAAP, this land would be classified as property, plant, and sale in the ordinary course of business, then the land M20 S3_E2_Joe.mp3 would be regarded as held equipment, or inventory, for capital appreciation, in Note to Media: Increase the depending on the other words, pause in the audio file after business operations of the entity. the word property and before the term plant in the 3rd Under U.S. GAAP, this land paragraph to indicate a would be classified as comma. property plant, and equipment, or inventory, depending on the business operations of the entity. 15

Click each image to learn more about it. #Joe#: Here are some examples of Mocha Liquid s property that you can take a look at. You ll see that Mocha Liquid has three warehouses and 1 piece of land classified as Mocha Liquid also has 10 other warehouses and 6 other pieces of land throughout the world. However, they are classified as property, plant, and equipment, as they are used in the production or supply of coffee goods. We will not discuss these assets in this course, as our focus is Click each image to learn more about it. Joe s dialog in background The camera should now shift to the soft board and display the images (see visual reference below). The images will be a clickable. On click, display the corresponding text. Also have a visited state for the items that are clicked. Allow the learner to move ahead only after all the items have been viewed. This is a non linear interactivity. [Textual Reference: IAS 40.8(a)] [Textual Reference: IAS 40.8 (b)] [Textual Reference: IAS 40.8(c)] [Textual Reference: IAS 40.8 (d)] Visual Reference M20 S3_E3_Joe.mp3 16

Note to Art: These images are sourced from the Internet and are used here only for representation. Every image will be recreated. Click 1 17

Fair value of this warehouse at: December 31,, 20X0 = $1 million December 31, 20X1 = $1.2 million Under IAS 40, a building owned by the entity and leased out under one or more operating leases is classified as an #Joe#: This warehouse is owned by Mocha Liquid and leased to a third party under an operating lease. The fair value of this warehouse at December 31, M20_S3_E4_Joe.mp3 20X0 is equal to $1 million. M20_S3_E4_Joe.mp3_New The fair value at December 31, 20X1 is equal to $1.2 million. Under IAS 40, a building owned by the entity, or held by the entity under a finance lease, and leased out under one or more operating leases, is classified as an Joe s dialog in background [Textual Reference: IAS 40..8(c)] Click 2 Click 3 Fair value of this warehouse at: December 31 20X0 = $500,000 December 31, #Joe#: This is the second warehouse held by Mocha Liquid under a finance lease and leased out to a third party under an Joe s dialog in background [Textual Reference: IAS 40..8(c)] 20X1 = $490,000 operating lease. The fair M20_S3_E5_Joe.mp3 (whichh is sold) value of this property at M20_S3_E5_Joe.mp3_New December 31, 20X0 is equal Under IAS 40, building to $500,000, and the fair held by the entity under a value at December 31, 20X1 finance leasee and leased is $490,000. out under one or more operating leases, is classified as Under IAS 40, a building owned by the entity, or held by the entity under a finance lease, and leased out under one or more operating leases, is classified as 18

Fair value of this warehouse at: December 31, 20X0 = $800,000 December 31, 20X1 = $900,000 This warehouse is owned by Mocha Liquid. However, currently it is vacant. The Company plans to leasee it out to a third party under an operating lease. Under IAS 40, a building that is vacant but is held to be leased out under one or more operating leases is classified as an #Joe#: The Company plans Joe s dialog in background to lease this warehouse to a [Textual Reference: IAS third party under an 40..8(d)] operating lease. The fair value of this property as December 31, 20X0 is equal M20_S3_E6_Joe.mp3 to $800,000, and the fair M20_S3_E6_Joe.mp3_New value at December 31, 20X1 is equal to $900,000. Under IAS 40, a building that is vacant but is held to be leased out under one or more operating leases is classified as an Click 4 Fair value of this land at: December 31, #Joe#: Mocha Liquid owns 5000 acres of land in Joe s dialog in background 20X0 = Colombia, which is currently [Textual Reference: IAS $10,000,000 December 31, unused. The Company management, however, is 40..8(b)] 20X1 = $11,000,000 unsure if they will ultimately sell this property or use it to M20_S3_E7_Joe.mp3 grow coffee for production M20_S3_E7_Joe.mp3_New Under IAS 40, land held for a currently purposes. The fair value of this land at December 31, undeterminedd future use 20X0 is $10 million, and at is classified as December 31, 20X1 is $11 In this case, if million. Mocha Liquid has not determined that it will useunder IAS 40, land held for the land as owner- or for occupied property short-term sale in the ordinary course of a currently undetermined future use is classified as In this case, if Mocha Liquid has business, the land will be not determined if it will use regarded as held for capital appreciation. the land as owner-occupied property, then the land will be regarded as held for capital appreciation, in other words, 19

Accounting Guidance for Investment Properties and Other Properties Click Investment Properties and Other Properties to view the complete chart. Click Close to continue. #Joe#: Now that you have Joe s dialog addressing the gone through what is learner. classified as property under IAS 40, let s Shift the camera back to Joe. take a look at what After he finishes saying the accounting guidance should first paragraph, and in sync be applied for with when he says This properties, as well as other chart, he should point to properties under IFRS. the cutout on the right side of the learner workstation. This chart will summarize The cutout is interactive, and the accounting guidance for learners will click first two, as well as other boxes to complete it. properties. When the learner rolls over Click Investment the cutout, show the chart Properties and Other shown in visual reference Properties to view the below. complete chart. Seee notes below visual reference below for programming instructions. Provide a Close button for the learner once all the components have been clicked. Display the learner instructions for the Close button once it becomes active. [Textual Reference: Insights into IFRS 3.4.55.10] M20_S3_E8_Joe.mp3 Visual Reference 20

This is an interactive flowchart. The learner has to click the areas on the image. 1. Highlight Investment Property. On clicking it, display the box below titled IAS 40 Investment Property. 2. Highlight Other Properties. On clicking it, slide down and display the connecting boxes from left to right. NA #Joe#: Note, as indicated Joe s dialog in the chart, properties under initial development or construction for future use M20_S3_E9_Joe.mp3 as property M20_S3_E9_Joe.mp3_New should be accounted for under IAS 40 and not under IAS 16. Complete storyboard available on request. 21