Day: December 27, 2021

(1) Where a company or a partnership has taken over the assets of a going concern, the agreement of sale should be inspected and that amount paid for them ascertained. It should be further verified that the allocation of the Read More …

Fixed assets are acquired for purpose of business with the object of earning revenue in the ordinary course of business ; these are intended to be used and not sold, e.g., land, building, machinery, etc. Almost all fixed assets (except Read More …

General Principles Verification of assets is an important audit process : by convention its scope has been limited to inspection of assets, where it is practicable, and collection of information about them on an examination of documentary and other evidence Read More …

A specific reserve is created for some definite purpose out of the profits of the company. The purpose may be any thing connected with the business which the Article of Association or the directors want to be provided for, such Read More …

Reserves are amounts appropriated out of profits which are not intended to meet any liability, contingency, commitment or diminution in the value of assets known to exist at the date of the Balance Sheet. In contradistinction, provisions are amounts charged Read More …

Beside charging annual depreciation on assets by the reason of normal wear and tear, afflux ion of time and obsolescence to re-instate the correct value of the assets considering the future cash flows that then asset can generate, impairment loss Read More …