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Hi All,
Could you give me some advice on the inventory of fixed assets? Is it prescribed by IAS 16? I can’t find anything in IAS 16?! I mean for Inventories there is an annual stock-taking. What about fixed assets`?
Many thanks.
You may, as an auditor, see a “Fixed asset register”. Otherwise, you would obtain a print out of the activity on the TNCA ( Tangible Non Current Assets ) computer account, get the print out of last year’s closing TNCA and, by merging the two, you’ll have an up-to-date record of TNCA.
As an auditor, check some items from the records to confirm the physical presence and condition of a sample, and then identify a sample of physically present TNCA items and check to the computer listing.
Incidentally, I would not normally use the word “inventory” in connection with TNCA. Inventory is really related to the goods which a company acquires and still holds with the intention of resale within the foreseeable future. And that does not sit well with the concept of TNCA
Hi MikeLittle,
Thank you for the advice.
I meant the stock-taking of fixed assets. Are the companies required to do it´regurlarly, eg. annually? Is it required by IFRS or only statutory regulations?
Thanks!
Hi
To my knowledge, it’s required by neither IFRS nor by statute.
And I wouldn’t use the expression of “stock-taking” with reference to TNCA either. It would normally be referred to as a “physical confirmation of fixed assets / TNCA ” – it’s neither inventory nor is it stock
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