Ias 40 investment properties, Auditing

Assignment Help:

IAS 40 Investment Properties

Audit work common to all kinds of land and building will be used to establish ownership, existence and price. IAS 40 requires such companies may adopt the cost based approach or the fair price policy about the treatment of investment properties. Whether the cost based approach is utilized, the accounting treatment is as for the benchmark treatment within IAS 16 Cost less accumulated impairment and depreciation losses and you must be familiar along with the audit procedures simply carried out.

Whether the fair value policy is adopted, the company is utilized to revalue of price the property all year taking losses and gains to the income statement.  Fair price will simply be verifiable through reference to recent prices on an active market.  In absent of the active market, the auditor may utilize to consider evidence of valuations from same markets discounted or suitably adjusted cash flow projections. So therefore the points peculiar to investment properties about the auditor to review involved:

(i) Confirming such the fair price policy is suitable as for example it is rented to a non group company

(ii) Evaluating the reliability of the evidence on that fair price is based especially whenever not any active market exists

(iii) Correctness of accounting for transfers among categorization to for from investment properties whether only a change of need has happened.

(iv) Totality of disclosure requirements.


Related Discussions:- Ias 40 investment properties

How do internal auditors add to the credibility of financial, How do intern...

How do internal auditors add to the credibility of financial statements?

Accounting concept and records-consistency, What fundamental accounting con...

What fundamental accounting concepts must you keep in mind in preparing to carry out your audit? Accounting Concept and Records Fundamental Accounting concepts are cove

Ifrs 5 non-current assets, IFRS 5 Non-Current Assets IFRS 5 Non-Curren...

IFRS 5 Non-Current Assets IFRS 5 Non-Current Assets Held for Discontinued and Sale Operations The Discontinuing Operation is a component of an enterprise: (a)  Such the

Over head, project report on absorption of overhead and its different meth...

project report on absorption of overhead and its different method

Distinguish between analytical procedures required by ASA315, what differen...

what difference between risk assessment procedure and substantive procedures? could you please provide some examples on each procedure?

Risk of material misstatement, For each of the following situations, descri...

For each of the following situations, describe how risk of material misstatement should be assessed and what effect the assessment will have on detection risk. (i) Johnson is a

Advocates, Advocates The statutory provision regulating the handling of...

Advocates The statutory provision regulating the handling of client’s monies is covered in the advocate's act. Principle of the rules: To require a lawyer to keep

Necessity of transactions with related parties, Necessity of Transactions w...

Necessity of Transactions with Related Parties Transactions along with related parties are essential for several reasons: (a) Several financial scandals including related p

Financial statements rely, Financial Statements Rely All Financial prov...

Financial Statements Rely All Financial providers people must be sure that the financial statements can be relied upon. It should be noted that: 1. The auditor himself must be

Relevance - sources of evidence, Relevance - Sources of evidence The a...

Relevance - Sources of evidence The auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information contain

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