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
Post Balance Sheet Events Post balance sheet events occupy a very significant place in auditing and hence there is generally a program of work which is carried out in this are

i have assignment question

what a group auditing and holding campanies in details with exmple propurly???

Advantages and Disadvantages of Joint Audits The general disadvantages and advantages of joint audits as: Advantages 1. All fees and work are welcome to audit firms. 2. A

Long-Term Liabilities Long-term liabilities are generally evidenced through an agreement called a debenture. For this purpose, long-term loans are often called debentures. The

Need for an Audit Whether you take an example for a modern large liability company, such we can clearly differentiate between those who control those funds the providers of fu

For each of the following independent situations, state whether you agree or disagree, and briefly explain your answer. (a) Materiality is used only at the planning stage of the

under what circumstances are internal controls inappropriate for auditors to check?

Relevance The auditor obtains evidence either through compliance testing of the internal controls or through substantive tests of the information contained in the financial sta