Audit Procedures for Non-Current Assets (3)

Question 1

Valuation (revaluation losses)

Answer 1

Inspect draft accounts to check client has recognised valuation losses in SOPL

Question 2

Accounting actions for revaluations when there is a credit balances in respect of that asser in equity?

Answer 2

It should be debited to equity to cancel the credit. All revaluation gains should be credited to equity

Question 3

Valuation depreciation review depreciation rates applied to? (Asset)

Answer 3

Asset lives

Question 4

Valuation depreciation review depreciation rates applied to? (Residual)

Answer 4

Residual values

Question 5

Valuation depreciation review depreciation rates applied to? (Replacement)

Answer 5

Replacement policy

Question 6

Valuation depreciation review depreciation rates applied to? (Past experience)

Answer 6

Past experience of gains and losses on disposal

Question 7

Valuation depreciation review depreciation rates applied to? (Consistency)

Answer 7

Consistency with prior years and accounting policy

Question 8

Valuation depreciation review depreciation rates applied to? (Obsolescence)

Answer 8

Possible obsolescense