Ias 36 impairment of assets, Auditing

IAS 36 Impairment of Assets

It is very necessary for the auditor to determine the client's method for determining and accounting for impairments.  Corresponding IAS 36, 'impairment' has occurred whereas recoverable amount has fallen under the asset's carrying value. The recoverable amount is higher of total seems value and value in need economic value.

The stages of the audit in this area could be:

1. Confirm where the enterprise has carried out other impairment checks and review the authority of the conclusions reached as to further whether analysis of impairment was essential.

2. Whether the client has concluded which no extra work is required and the auditor concurs, further no more audit work is needed. Conversely the audit disagrees and considers which the value of some assets has been impaired, then it is required to argue the matter along with management.  Whether no further action is taken through management means it may be compulsory to question a modified audit report providing a qualified opinion based on the disagreement along with detailing and management the reason of the disagreement.  Obviously, in majority of cases extra action will be taken through management and a customized report will not be required whether the auditor is satisfied along with such further action.

3. Whether the client has concluded such impairment checks are required, the auditor will review the stages of the impairment verify, paying specific attention to:

  1. The authority of the enterprise's work in arriving at net selling price
  2. The authority of the enterprise's work in calculating value in need, along with particular reference to the acceptability of the basis for approximate future of discounting rate and cash flows adopted.
  3. The authority of the client's procedures in applying the impairment review technique for cash- generating units.
  4. Compliance along with relevant disclosure requirements.
Posted Date: 1/25/2013 2:33:55 AM | Location : United States







Related Discussions:- Ias 36 impairment of assets, Assignment Help, Ask Question on Ias 36 impairment of assets, Get Answer, Expert's Help, Ias 36 impairment of assets Discussions

Write discussion on Ias 36 impairment of assets
Your posts are moderated
Related Questions
example of it security policies in Hardware

The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that serves the public interest by setting high-quality international stand

Non-statutory Audits The non-statutory audits are performed through independent auditors sicne the owners, proprietors, trustees, members  and governing and professional bodie

Types of audits As far we have tended to think in state of the audit of limited companies, and certainly, the emphasis during this text will be on that companies incorporated

The International Auditing and Assurance Standards Board The IAASB is a Board familiar by IFAC. The associates of the IAASB are selected by the IFAC Board to serve on IAASB. IA

Financial Instruments - IAS 32 and IAS 39 IAS 39 and IAS 32 are examinable to the extent such they deal along with the presentation and measurement of equity, debt or else con

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

Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'

Kevin Black, the sole owner of a small bakery, has been told that the business should have financial statements reported on by an independent auditor. Kevin Black, having some b

Blowing the Whistle on Former Partners On St. Patrick's Day in 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, a