Amortization and impairment, Auditing

Assignment Help:

Amortization and Impairment

Amortization - capitalized costs would be amortized to reflect the pattern whether the related economic benefits are identified. Once commercial creation has commenced development costs should be amortized over the time of production such has benefited from the development expenditure. On a time using or basis a 'unit production' method this may be done.

Impairment - deferred development expenditure should be reviewed on the end of each accounting time and whether the circumstances that have justified the expenditure should be written off immediately, the deferral of the expenditure no longer applies.

The main process in audit work to verify compliance along with IAS 38 are to verify that the situation noted above for recognition of development costs have been complied along with.


Related Discussions:- Amortization and impairment

Auditing case study, #Fortex Limited, the meat processing firm, was formed ...

#Fortex Limited, the meat processing firm, was formed in 1985 from three smaller companies. In 1993, however, after a few years of spectacular growth, the company collapsed. a) S

Tell me how to do an internal audit efficiently, With internal audit we alw...

With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.

INTANGIBLE ASSET, problems associated with intangible asset audit

problems associated with intangible asset audit

Audit procedures, audit procedure for shares or common stock

audit procedure for shares or common stock

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

Detail work on stocks - audit of current assets, Detail work on stocks - Au...

Detail work on stocks - Audit of Current Assets Detail work on stocks is imperative in an audit, since there are other review tests that are equally important and these includ

Audit points - audit process, Audit points - Audit Process Key audit p...

Audit points - Audit Process Key audit points are as 1. Internal control particularly along with regard to computerisation and internal audit.  2. Provision for doubtful

Communications to regulatory and enforcement authorities, Communications to...

Communications to Regulatory and Enforcement Authorities The auditor’s professional responsibility to sustain the confidentiality of client information ordinarily prevents repo

Procedures when fraud is suspected, Procedures When Fraud is suspected ...

Procedures When Fraud is suspected Whenever the auditor encounters situation that might indicate that there is a material mis-statement in the financial statements resultant fr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd