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

Verification work - audit process, Verification Work - Audit Process A...

Verification Work - Audit Process At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of

Experts as a source of audit evidence, Experts as a source of Audit Evidenc...

Experts as a source of Audit Evidence Mostly the auditor's work on evidence obtained from along within the entity supported through confirmations from third parties will provi

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

Ownership and existence - verification procedures, Ownership and Existence ...

Ownership and Existence - Verification Procedures Establishment of title and beneficial ownership of investments is not convincingly possible. Conversely, evidence is obtainab

Auditor, auditor is a watch dog not a blood hound

auditor is a watch dog not a blood hound

Ias 27 - audit process, IAS 27 - Audit Process IAS 27 applies to the ...

IAS 27 - Audit Process IAS 27 applies to the presentation and preparation of consolidated financial statements for a group of entities within the control of a parent. It as w

Specialized audit situations, Specialized Audit Situations Companies c...

Specialized Audit Situations Companies carry on thousands of different types of trade, business or professional activities.  It is not possible in a manual on general auditing

Types of audits, Types of audits As far we have tended to think in sta...

Types of audits As far we have tended to think in state of the audit of limited companies, and certainly, the emphasis during this text will be on that companies incorporated

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