Issues for finance leases, Auditing

Assignment Help:

Issues for Finance Leases

For the leases such have been categorize as finance leases, a model uses to be checked for the following issues:

(i) Check technique used to split capital and interest

(ii) Check the technique is appropriately applied to lease payments

(iii) Check reduction which is based on the shorter of the lease term and the needful life of the asset to the lessee.

In addition 'normal' audit tests verification of the asset as for many non current assets. Whether the lease has been classified as an operating lease, then a check is required of the manner in which the rentals have been charged to the income statement.  A check should be made on the physical existence also of the asset whether at the time of the audit the lease is still in existence.

Finally regard should be made to the possibility of assets being held within leases also being shown in normal noncurrent assets in the balance sheet.  This is principally relevant to operating leases whether the existence of a physical asset at the balance sheet date have to be required to support the inclusion of the asset in the non current asset account.


Related Discussions:- Issues for finance leases

Plant and machinery - valuation and authorization, Plant and Machinery - Va...

Plant and Machinery - Valuation and Authorization Valuation Valuation is at depreciated historic costs.  Auditor's duty is to make sure that the accounting policy for dep

Overview of the audit process, (i) Overview of the audit process (a) Ide...

(i) Overview of the audit process (a) Identify the key steps in this framework/ concept. (b) Briefly explain each of the key steps, in your own words. (ii) Framework of cr

ONLINE EXAM AUDITING CLASS, Hi Dear, Could you please help me with online ...

Hi Dear, Could you please help me with online exam in Auditing Class !!

Evidence, Method of corrercting evidence?

Method of corrercting evidence?

Goodwill, How would you value the Goodwill

How would you value the Goodwill

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

Measures taken by the individual auditor, Measures To Be Taken By the Indiv...

Measures To Be Taken By the Individual Auditor Proper recruitment and training of all staff; Allocating staff to particular audits where they have the appropriate skills;

Recording the audit - isa 230, Recording the Audit - ISA 230 Purpose...

Recording the Audit - ISA 230 Purpose of working papers It is necessary which all audit work is documented - the working papers are the tangible evidence of the work co

#TITLE, WHAT OF COST OF JOURNAL ENTRY?

WHAT OF COST OF JOURNAL ENTRY?

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