Ias 28 - audit process, Auditing

Assignment Help:

IAS 28 - Audit Process

IAS 28 applies in accounting for investments in associates, except those held through:

  1. Venture capital organisations, or
  2. Mutual funds, and similar entities and unit trusts involving investment-linked insurance funds

That on initial recognition are designated as at fair value via loss or profit or are classified as held for trading and accounted for in accordance along with IAS 39 Financial Instruments: Measurement and Recognition.

Summary of IAS 28

An associate is an entity over that the investor has significant influence and such is neither a subsidiary nor an interest in a joint venture. Important influence is the power to participate in financial and operating policy decisions of the investee however not control or joint control over those policies is. That influence is presumed to exist whether the investor owns 20 per cent or more of the voting power of the investee. So an investment in a related is accounted for via the equity method. The equity technique is not utilised whenever situation are like:

  1. The investment is classified like held for sale in accordance along with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; or
  2. The investor is itself a subsidiary, its owners do not object to the equity technique not being applied, and the debt and equity securities of that are not publicly traded. In this situation the investor's parent might present consolidated financial statements such comply along with IFRSs.

The investor's financial statements are prepared using uniform accounting policies for like transactions and events in same circumstances. Any difference among the reporting date of the investor and its associate must not be more than 3 months.

An investor discontinues the equity technique from the date such it ceases to have important influence over the associate. From that particular date it accounts for the investment in accordance along with IAS 39, given the associate does not become a subsidiary or a joint venture as defined in IAS 31. IAS 28 specifies disclosures to be created in the investor's financial statements about Associates.


Related Discussions:- Ias 28 - audit process

Banks, Banks The Authoritative documents are: The Central Bank of...

Banks The Authoritative documents are: The Central Bank of Kenya Act, The Companies Act Cap 486. IAS 30 Disclosure in the Financial statements of Banks and Similar

Auditing question, As an auditor, how would you react to the following situ...

As an auditor, how would you react to the following situation? The company produced photocopies of fixed deposit receipts as the original receipts were kept in the iron safe of the

Transaction Class Narratives, Prepare a narrative describing the transactio...

Prepare a narrative describing the transaction cycle process for debt in a municipality.

Current audit file, Current Audit File The current audit file may invo...

Current Audit File The current audit file may involve inter alia: a) A copy of the audited financial statements and other report prepared such as a conclusion of audit work

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

Attempts at definition of the ''true and fair'' view, Attempts at definitio...

Attempts at definition of the 'true and fair' view There following quotations represent authoritative views on the meaning of true and fair view. A true and fair view impli

Organization - work related health problems, Organization - Work Related He...

Organization - Work Related Health Problems There are various organizations both government and private which conduct researches on Biomedical and Ergonomics, Behavioral Scien

What do you understand by yellow book, Q. What do you understand by Yellow ...

Q. What do you understand by Yellow Book? Yellow Book - Written by GENERAL ACCOUNTABILITY OFFICE, yellow book sets forth standards to be followed in auditing FINANCIAL STATEMEN

Assignment, Ask question Using analytical procedures and the information pr...

Ask question Using analytical procedures and the information provided in the appendix, perform an analysis of Cloud 9’s financial position and its business risks. Discuss the ratio

Determine the audit methodologies to conduct an audit, You are the external...

You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd