Amortization and impairment, Auditing

Amortization and Impairment

Amortization - capitalized costs would be amortized to reflect the pattern whether the related economic benefits are identified. Once commercial creation has commenced development costs should be amortized over the time of production such has benefited from the development expenditure. On a time using or basis a 'unit production' method this may be done.

Impairment - deferred development expenditure should be reviewed on the end of each accounting time and whether the circumstances that have justified the expenditure should be written off immediately, the deferral of the expenditure no longer applies.

The main process in audit work to verify compliance along with IAS 38 are to verify that the situation noted above for recognition of development costs have been complied along with.

Posted Date: 1/25/2013 2:26:23 AM | Location : United States







Related Discussions:- Amortization and impairment, Assignment Help, Ask Question on Amortization and impairment, Get Answer, Expert's Help, Amortization and impairment Discussions

Write discussion on Amortization and impairment
Your posts are moderated
Related Questions
Problem 10.42 An investment of $83 generates after-tax cash flows of $49 in Year 1, $67 in Year 2, and $131 in Year 3. The required rate of return is 20 percent. The net presen

Question 1: What do you meant by Proactive Project Management? Define Proactive Project Management Bring out significance of Proactive Project Management with an exa

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

hi, im a preformer and i want to know should i be myself duing an audition or should i act proper ans sweet like everyone els

online exam in Auditing class. the exam will be about 2 hr. Thank you

Types of audits So far we have tended to think in terms of the audit of limited companies, and indeed, the emphasis throughout this text will be on such companies incorporated

Furniture, Fixtures and Disposal of Non-Current Assets Furniture, fixtures and fittings The only matter here to note is the depreciation of fittings and fixtures.  Since

Auditors Procedures During Stock Taking The main task during stock taking is to ascertain where the client's employees are carrying out their commands properly. It is particul

Q. What is Withholding Allowance? Withholding Allowance -Every taxpayer is allowed to claim a withholding allowance, which exempts a certain amount of wages from being subject