Ias 40 investment properties, Auditing

IAS 40 Investment Properties

Audit work common to all kinds of land and building will be used to establish ownership, existence and price. IAS 40 requires such companies may adopt the cost based approach or the fair price policy about the treatment of investment properties. Whether the cost based approach is utilized, the accounting treatment is as for the benchmark treatment within IAS 16 Cost less accumulated impairment and depreciation losses and you must be familiar along with the audit procedures simply carried out.

Whether the fair value policy is adopted, the company is utilized to revalue of price the property all year taking losses and gains to the income statement.  Fair price will simply be verifiable through reference to recent prices on an active market.  In absent of the active market, the auditor may utilize to consider evidence of valuations from same markets discounted or suitably adjusted cash flow projections. So therefore the points peculiar to investment properties about the auditor to review involved:

(i) Confirming such the fair price policy is suitable as for example it is rented to a non group company

(ii) Evaluating the reliability of the evidence on that fair price is based especially whenever not any active market exists

(iii) Correctness of accounting for transfers among categorization to for from investment properties whether only a change of need has happened.

(iv) Totality of disclosure requirements.

Posted Date: 1/25/2013 2:47:15 AM | Location : United States







Related Discussions:- Ias 40 investment properties, Assignment Help, Ask Question on Ias 40 investment properties, Get Answer, Expert's Help, Ias 40 investment properties Discussions

Write discussion on Ias 40 investment properties
Your posts are moderated
Related Questions
Interim and Final Audits Whereas the split between the systems and balance sheet audits is concerned with thetype of work covered, that between the interim and final audits is

The management of a newly incorporated company is unsure as to the need for an audit. Your services have been requested to explain to management the concept of auditing. Requir


Related Parties - Audit Evidence IAS 24 prescribes the disclosures essential to the possibility to draw attention which the financial position and loss or profit of an entity

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor ke

Managements interest in the accounting system Management needs complete and accurate books of accounts because: There is no other way the business can be controlled; Rec

Business Risk Analysis Business risk can be analyzed between external and internal risks: External risks: Changing legislation (e.g. minimum wage) Changing inter

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c