Ias 28 - audit process, Auditing

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.

Posted Date: 1/28/2013 5:14:54 AM | Location : United States







Related Discussions:- Ias 28 - audit process, Assignment Help, Ask Question on Ias 28 - audit process, Get Answer, Expert's Help, Ias 28 - audit process Discussions

Write discussion on Ias 28 - audit process
Your posts are moderated
Related Questions
Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

Control Problems in Charities 1. Door to door collections : Volunteers should be mattered along with numbered boxes, the boxes should be sealed, and the boxes should be

Auditor's Duty - Audit Process The auditor has a responsibility to express a thought on the truth and fairness and compliance along with legislation, of the accounts. The valu

Banks The Authoritative documents are: The Central Bank of Kenya Act, The Companies Act Cap 486. IAS 30 Disclosure in the Financial statements of Banks and Similar


Judgmental Sampling Judgment sampling is where the auditor using his own experience and knowledge of the client's business and circumstances selects the sample to be tested wi

discuss the factors affecting the sufficiency of audit evidence

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi

Concept of Audit Evidence The auditing is an evidence gathering exercise.  It is an exercise continued out to confirm the assertions made through the management in carrying ou

The Need for an Audit If you take an example of a modern large liability company, we can clearly distinguish between the providers of funds and those who control those funds. The