valuation assertion for property, plant,
Q: Define asset classifications.
A: Assets: Assets are the resources owned by the business, and used to earn its current and future…
Q: journal entry for purchase of the land.
A: Cost of a fixed asset include all costs incurred to bring the asset into present location and…
Q: Define current asset
A: Current Assets are those assets that are to be held for short term and can be converted into cash…
Q: main sources of information for valuation?
A: Valuation is the process of determining the fair market value of a company's assets or operations.…
Q: how the value of the property is established through an appraisal?
A: Appraisal of a property is done to understand the highest probable price for a property and to…
Q: Need the answer of Land and explanation
A: The value of land can be found easily as we are provided with the amount of total assets and the…
Q: Which of the following assets should be a. land.
A: Amortization is an accounting practice that lowers the book value of an intangible asset over a…
Q: ation will such be a Property, plant, and lotes payable
A: Sr No. Particulars Type of Account Type of organisation 1 Property, Plant & Equipment Fixed…
Q: Distinguish between the cost of land and the cost of land improvements with example.
A: Land improvements means any type of alteration to the land to make it more usable. Land improvements…
Q: Describe how property, plant, and equipment disposal is accounted for
A: Property, plant, and equipment disposal is accounted will be explained :
Q: What are plant assets?
A: Solution:- Plant assets means as follows under:-
Q: A right of use asset is reported as CHOICES Intangible asset Investment Property…
A: Right to use assets are those assets which are generated by acquiring right to use the asset for the…
Q: What are the characteristics of plant assets?
A: Plant Asset: A plant asset is an asset purchased by the business that has a useful life exceeding…
Q: Which of the following accounts would be included in the property, plant, and equipment category of…
A: Accumulated depreciation:The total amount of depreciation expense deducted, from the time asset…
Q: What financial statements are property, plant, and equipment reported on, and how?
A: Property, plant, and equipment are non-current assets which are reported on the balance sheet of the…
Q: purchase of land is a financing activity
A: There are three main activities is determined under the statement of cash flows, cash from operating…
Q: What are the major characteristics of plant assets?
A:
Q: Define Donated Assets.
A: Donated assets are the assets donated to governmental or non profit entity without any consideration…
Q: give the definition, recognition, measurement and derecognition of investment property
A: Speculation property are going to be property (tructure or part of a structure each) control (by the…
Q: Definition of Land Improvements
A:
Q: Distinguish between measuring assets based on current cost and historical cost.
A:
Q: Property, Plant, and Equipment, Net
A: The gross property, plant, and equipment represent the total of long-term assets. Whereas, net…
Q: Describe Expenditures Subsequent to Acquisition.
A: Definition: Property, plant, and equipment: These assets are long-lived economic resources which…
Q: How to calculate deprecation
A: Fixed assets are assets which are held by the business for longer period of time. For example, Land,…
Q: For the given asset, A plot of land for your personal use, state whether the asset is tangible/…
A: An asset is depreciable asset if it satisfies three criteria as mentioned under: It is held for…
Q: How can I compute the acquasition of plant assets?
A: The acquisition cost incurred on a plant asset is the cost expended to acquire and place the asset…
Q: Define cost of land.
A: Land improvements: They are the improvements that are made to a plot of land to make it more usable.…
Q: Why It’s important to distinguish between the cost of land and the cost of land improvement?
A: The cost of land and cost of land improvements are to distinguished and are to be recorded…
Q: What financial statement are property, plant, and equipment reported on, and how?
A: Property, Plant and Equipment (PPE) refers to all the tangible fixed assets or properties that a…
Q: Explain Land Acquisition and Development Costs?
A: Land acquisition: It is the process by which the government acquires private property for a public…
Q: Compare the financial reporting of investment property with that of property, plant, andequipment
A: As per IFRS, investment property is the property owned only with the motive of earning capital…
Q: definition, recognition, measurement and derecognition of investment property.
A:
Q: property, plant, and equipment. o land expense. a long-term investment.
A: Long Term Investment:- A Long term investment is also known as non-current assets in accounts. It…
Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at
A: A newly acquired asset is considered as a held for sale to a distributors when a non-current asset…
Q: Explain Diversification by Property Type and Location?
A: The question is based on the concept of diversification in field of real estate investment.…
Q: The cost of intangible asset acquired
A: As per IAS 38, Intangible assets are those assets which states the requirements of accounting for…
Q: Describe the valuation principles of the acquisition method.
A: Acquisition: The acquisition refers to the business combination when one entity or organization…
Q: Plant assets are recorded at historical cost. What does the historical cost of a plant asset…
A: Plant assets are recorded at historical cost. Historical cost includes: Asset purchase price,…
Q: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…
A: Disposal of plant assets, may result in gain or loss.
Q: Demonstrate how to report and analyze property, plant, equipment, and natural resources.
A: Asset: It refers to the sum total of the economic value of all the resources owned by the company.…
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- In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? A. Are depreciation policies in accordance with applicable financial reporting framework? B. Are disposals of PPE properly utilized, removed from records including depreciation, and recorded in correct accounting period? C. All of the choices D. Are all PPE , including finance leases, properly authorized, recorded in accordance with the capitalization threshold (ex. 10,000) and in correct accounting period?In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? A. Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period? B. Are depreciation policies in accordance with applicable financial reporting framework? C. All of the choices. D. Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period?The auditing procedure that could least likely lead the auditor to find unrecorded property, plant, and equipment disposals isA. Vouching purchase invoices for asset additions.B. Review of voucher for the payment of property taxes.C. Review of miscellaneous income accountD. Review of loan agreement for fixed assets used as collateralE. None of them
- In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b. Group of answer choices a c b dWhich of the following best describes the independent auditor's approach to obtaining satisfaction concerning depreciation expense in the income statement? a.Review the mathematical accuracy of the amounts charged to income as a result of depreciation expens b.Determine the method of computing depreciation expense and ascertain that it is in accordance with generally accepted accounting principle c.Support the basis of depreciable assets and the depreciation expens d.Reconcile the amount of depreciation expense to those amounts credited to accumulated depreciation account e.Select a sample of equipment items in the manufacturing facility and vouch back to the recorded subsidiary ledge r.s.e.s.e.ry ledger.explainthe process of auditing the followingtransactions/accounts of Real estate companies * Value of inventories* Impairment testing of property and equipment* Value of investment property* Revenue recognition
- Which of the following disclosures must be included in the notes to the financial statements? the model numbers of each depreciable asset. the methods used in computing depreciation for each major class of depreciable asset. the rate of return on investment for each major class of depreciable asset. all of these choices.1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment accounts are not understated. b)determine that all maintenance items are recorded. c)determine that plant & equipment accounts are not overstated d)determine that maintenance expense amounts are authorized. 2)In auditing valuation of property, plant and equipment when its value is impaired, the auditors should: a)recalculate the depreciation expense on the item. b)recompute the net book value of the item. c)vouch the purchase of the item. d)evaluate the valuation model used for the item. 3)Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? a)Management may choose to lease assets rather than buy them. b)Leased assets have a higher risk of misstatement. c)Most leased assets should be capitalized.d)Repairs and maintenance expense is affected by leased assets. 4)Which of the following best…46 The auditor should test for unrecorded retirements of properties by _______________. This procedure is relevant for validating the __________ assertion over the properties. Group of answer choices Tracing physical assets observed while conducting an ocular inspection to the records; completeness. Vouching items in the property records to the acquisition source documents; existence. Recomputing the depreciation charges on the properties; valuation. Selecting items in the property records and then tracing them back to the physical assets while conducting an ocular inspection of the properties, existence.
- In the examination of property, plant, and equipment, the auditor tries to determine all of the followingexcept theA. Effectiveness of the internal control structureB. Authorization of property abandoned during the yearC. Presence of an insurance policy related to property, plant, and equipmentD. Availability of company’s depreciation policyE. None of them1. Of the following assertions, which is generally considered a particularly high risk for self-constructed fixed assets? a. Completeness b. Presentation c. Ownership (rights) d. Valuation 2. Which of the following types of fixed assets is considered to have higher inherent risk? a. Leased fixed assets b. Purchased equipment c. Vehicles d. Purchased buildings 3. Which of the following is the usual audit procedure for testing the existence assertion for fixed assets? a. Vouching a sample of additions to fixed assets made during the fiscal year being audited, to supporting vendor invoices. b. Vouching a sample of deletions of fixed assets made during the fiscal year being audited and prior years, to supporting vendor invoices. c. Tracing a sample of vendor invoices to debits to fixed assets during the fiscal year being audited. d. Substantive analytical procedures 4. An auditor has been assigned to audit the existence assertion for fixed assets. The auditor (a Mercer graduate) should…16. In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? Group of answer choices Are depreciation policies in accordance with applicable financial reporting framework? Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period? Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period? All of the choices.