Investment - audit process, Auditing

Investment - Audit Process

The investment is held for wealth generation that as interest and dividends on shares and capital growth and loan notice.  Recent investments are readily considered and are intended to be held for not much more than one year.  Other investments are long term investments.

The investments in associates, subsidiaries and joint ventures utilize special accounting procedures for the preparation of additional financial statements - the group accounts, otherwise identified as consolidated accounts.  Like from your earlier studies you must be familiar along with the definitions relating to the group accounts.  See an example a broadly, subsidiary is more than 50% under controlled, and a concerned company is one over that an entity has a 'significant influence' as evidenced through at least a 20% on holding. Long term investments can be carried at cost or the lower of cost and revalued amounts market value determined on a portfolio basis decided through the director. The carrying amount of a long term investment must be reduced to identify impairments in price.

Whereas long term investments are carried on market value a consistent policy must be adopted whereof decreases or increases in the carrying amount should either go with the income statement, or through a revaluation account in equity.  To the extent such there is no revaluation surplus concerning to a particular asset, other deficit must be charged to income. Whenever assets carried on market value are disposed of the company must adopt a policy of crediting outstanding revaluation surpluses to either retained, or income earnings. Recent investments can be carried on market value or on the lower cost or on market value.

Posted Date: 1/25/2013 2:35:43 AM | Location : United States







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

Write discussion on Investment - audit process
Your posts are moderated
Related Questions
Question : Describe the methodology and process of conducting an audit. Define audit Describe the methodology of conducting an audit  Describe the process of conduc

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

Fraud and Error ISA 240: the Auditor’s duty to Consider Fraud and Error defines that whenever planning and performing audit procedures, computing and reporting outcomes thereby

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu


Valuation and Income - Verification Procedures Valuation Valuation of listed securities is easily conformed along with suitable financial publications. Directors' valua

How do internal auditors add to the credibility of financial statements?

(a) Define each of the following four concepts. -Master Data Management -Data Quality -Data Governance -Cloud Computing Explain how they relate to the various Busine

impact on audit report of going concern