Beneficial ownership or title, Auditing

Beneficial Ownership or Title

In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to normal trading practices. Commercial law states such title to goods passes to the buyer one time they are delivered on a valid contract, whether the buying company went into liquidation therefore the seller company mainly probably would lose the money and stocks. This was considered business practice for centuries. The Romalpa case rules such transactions can be made matter to reservation of title until such a time as the buying companies create payment. The case in future ruled about such a reservation should be clearly stated in the suitable sales documentation and such the rights of the selling company over unpaid for stocks can even when extend to goods created from the store and the sale proceeds there for.

In the strict legal sense, stocks subject to that a reservation clause should be involved in the buying company's accounts when they are paid for. Accounting treatments admits the concept of substance over form and as a conclusion the amounts are shown as sales through the selling company and as purchases and stocks through the buying company. This supposes a condition where the buying company is a going relates. Whether the financial place of the buying company is in doubt then the amounts in question should be removed from both creditors and stocks in the buying company's books. In the event such the commercial basis of presentation is adopted and the amounts included are extremely important, after that it may be essential to reveal in a notice to the accounts such creditors of the suitable amount are secured through a particular stock.

Posted Date: 1/27/2013 11:54:15 PM | Location : United States







Related Discussions:- Beneficial ownership or title, Assignment Help, Ask Question on Beneficial ownership or title, Get Answer, Expert's Help, Beneficial ownership or title Discussions

Write discussion on Beneficial ownership or title
Your posts are moderated
Related Questions
Accounting Principles and Policies The user of the accounts expects that the accounting principles and policies used will be in conformity with IAS, be generally accepted, be

Reference to an expert in the Auditor's Report When issuing an unmodified auditors report, the auditor should not refer to the work of the expert.  This is because such a refe

Incorporated Banks under Companies Act Banks are incorporated under the Companies Act like any other business but are granted special privileges under the same Companies Act a

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;

Question : (a) Describe the following terms: 1) Forensic Accounting; 2) Forensic Investigation; 3) Forensic Auditing. (b) Explain the basic elements to consider for

I need a 5 schedules like the sample on the attachment please follow the Instructions you will see in the instructions attachments 4 companies and you have to choose 5th one by yo

Stock Taking - Audit Process The procedures for carrying out physical stock taking vary in detail according to the circumstances and size of the business and the life of its


In planning the audit work of the Ministry, the audit staff member collected these details relating to the construction of an office complex. 1. In September 1994, the Ministry

Forms of Evidence Observation , is mostly witnessing internal book-keeping procedures and system control. It involves attendance at wages pay out. Observation of stock-ta