You are a certified public accountant working for Acc 123 accounting firm. One of the clients is
Question:
You are a certified public accountant working for Acc 123 accounting firm. One of the clients is 123 Ltd. Claire is the managing director of this company and has some concerns to consult with you.
Depreciation expenses related to the company's equipment. In particular, the depreciation expense is not high enough compared to factory machines, where the application of new technologies in this field makes machines rapidly obsolete. The frequency of renewing the machines became higher, and due to the low depreciation expense, the funds were not sufficient to purchase a new batch of machines. Should I worry about the expense of depreciation.
All non-current assets including land and buildings, motor vehicles and furniture and fixtures, whether it is necessary to revalue non-current assets, one of the buildings is a heritage listed building and it is difficult to value. Please advise whether the proposed accounting for the revaluation is acceptable. If so, how to solve the heritage-listed building conundrum?
What are the disclosure requirements for this change? If not, explain why and attach appropriate references to support your suggestion.
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston