Realise a real collaborative partnership with project stakeholders regardless of native software.
Audit readiness 3 Investment Property Adequate documentation must be in place to support the assumption that Investment properties reflect the existing business circumstances and economic conditions in accordance with the accounting policies being used.
The subject matter for discussion on audit readiness this week is Investment Property.
This item falls within the scope of IAS 40 Investment property. Investment property is property land or a building — or part of a building or both held by the owner or by the lessee under a finance lease to earn rentals or for capital appreciation or both, rather than for: If an entity has not decided whether land will be used for owner-occupation or for short-term sale in the ordinary course of business, it should be regarded as held for capital appreciation; A building owned or held under a finance lease by an entity and leased out under operating lease s ; A vacant building that is being held to be leased out under an operating lease or leases ; and Property that is being constructed or developed for future use as investment property.
Examples of items that are not investment property include: This means that properties acquired specifically for the purpose of subsequent disposal in the near future, or for development and resale, are excluded from the scope of IAS 40; Property being constructed or developed on behalf of third parties within the scope of IAS 11 Construction Contracts ; Owner-occupied property, which includes property held for future development and subsequent use as owner-occupied property, property held for future use as owner occupied property, employee occupied property whether or not the employees pay rent at market rates and owner-occupied property awaiting disposal; and Property leased to another entity under a finance lease.
The Standard acknowledges that judgement is often required to determine whether a property qualifies as an investment property and requires entities to develop criteria to enable them to make that determination in a consistent manner.
The criteria used for the classification must be documented for the entity's Auditors review. This criteria may be tested by the Auditors to ensure that it complies with the provisions of IAS 40 as set out above.
The various sub-processes under these principal business areas may be subjected to further control testing. The objectives for testing the sub processes are: Acquiring Investment Properties Recorded investment properties acquisitions represent Investment properties acquired by the organization.
All acquisitions are accurately recorded and in the appropriate period. All pre-acquisition and project costs associated with investment properties under development are approved and recorded accurately.
Depreciating Investment Properties where 'cost' is the measurement policy Depreciation charges are valid and are accurately calculated and recorded. All depreciation charges are recorded in the appropriate period. Disposing Of Investment Properties Recorded Investment properties disposals represent actual disposals.
All Investment properties disposals are recorded. Investment properties disposals are accurately calculated and recorded in the appropriate period. Investment properties to be disposed of that required regulatory approval are communicated to the respective regulatory agency for necessary approval.
The External Auditors would always want to ensure compliance with International Standard on Auditing on consideration of laws and regulations in a financial statement audit. Managing Investment Properties The Auditors may also test the effectiveness of the entity's internal controls to ensure that investment properties are adequately safeguarded.
Adequate documentation must be in place to support the assumption that Investment properties reflect the existing business circumstances and economic conditions in accordance with the accounting policies being used.
Financial information is appropriately presented and all information that is necessary for fair presentation and compliance with professional standards or legal requirements is disclosed.
For Investment properties that are carried at cost, Impairment losses are identified and appropriately accounted for. The policies and procedures for impairment should comply with the provisions of IAS 36 Impairment of Assets.
The bases and assumptions for valuation of investment properties that are carried at fair value must be documented for the auditor's review since the information also constitute a significant disclosure in the financial statement.2 risk management has been recognized as a necessity in most industries today, and a set of techniques have been developed to control the influences brought by potential risks (Schuyler.
Staff factsheet focusing on how to account for a remeasurement to fair value for investment property and as property, plant and equipment. Staff Education Note 5: Property, plant and equipment FRC, December Guidance note produced by the FRC comparing the accounting requirements for property, plant and equipment under FRS 5, FRS 15 and FRS Bridge Construction Manual Guidelines to Project Supervisors Bridge Engineering Page 1 Revision: April record keeping, quality audit and corrective action.
The attitude of doing things right the first time and the total commitment to quality involves everyone.
the Property Negotiator. Compliance audits usually are performed in conjunction with a ﬁnancial Audit risk of noncompliance is a function of the risks of or property).
AU § Compliance Auditing Grantor. A government agency from which funding for the government pro-gram originates. Known questioned costs.
Programme for building design and construction. Relevant event. Relevant event v relevant matter. Relevant matter. External references.
Walter Lilly and Co Ltd v Mackay Royal Brompton Hospital National Health Trust v Hammond and Others. City Inn v Shepherd. Thus the task of effective risk management in construction is the prevention of losses caused by exposure to risk for example accidents, loss of money or time, damage to property or loss of reputation.
Risk Management Risk management in construction is designed to plan, monitor and control those measures needed to prevent exposure to risk.