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so you mean sir a CGU/assets value in us will fall?
but even if i assume that value in use will fall, its not necessary that FV will fall too. And if FV is above carrying amount, then even if Value in use goes down, it won’t impair the asset.
i read through the attached post, tutor, but I am afraid am still not quite there.
How does reviewing post-yr end claims/returns help in assessing reasonableness of mgt judgement. I mean auditor would hardly have data of 3-4months after the year end, in that small period what are they going to compare with what? and how?
Dear tutor i have a doubt related to Jiya024’s question. The method to calculate the expected credit losses remains the same, whether the asset is credit impaired or credit risk has increased significantly/is still low. In all 3 conditions same way of calculating credit loss, as the PV of difference between contractual cash flows and the cash flows entity expects to receive, true tutor?
sir I realised the title of this post is slightly misleading. I actually wanted to write IAS 21 under FV model. I know that IAS 21 is effects of changes in foreign exchange rates. Apologies for the goof up.
2nd doubt:
ma’am I am curious to understand how interim audit is “Useful when there is increased detection risk due to a tight reporting deadline.”
for example if we are concerned about recoverability of TRs then its difficult to do any valuation test with tighter deadline, so detection risk increases.
but its equally difficult during interim audit as we can’t examine extended post-yr cash receipts to ensure the valuation is correct, and adequate loss allowance is provided for.
So then how is an interim audit useful in mitigating detection risk when there are tight deadlines?
Hey jean. The thing is am more of a solitary learner, so I don’t think I’ll be able to join the group you sent me a link of. Thanks for the offer tho.
Good luck for your F6.Sir I too am a little confused. As per the study text it’s revenue expenditure, but I was just wondering that redecoration should in reality enhance the look of the shop(beyond maintenance), thus allowing the owner to augment his income. That way, it becomes an improvement/cap ex, which is disallowed.
So, could you just shed some light on this area.
