Financial Audit Update Thursday 3 March 2011 and Thursday 10 March 2011_part6 potx

Impact of natural disastersPaul Christensen Acting Director – Audit Policy and Quality This is trial version www.adultpdf.com... Areas to be considered• Non-current physical assets • Gra

Trang 1

Impact of natural disasters

Paul Christensen

Acting Director –

Audit Policy and Quality

This is trial version www.adultpdf.com

Trang 2

Areas to be considered

• Non-current physical assets

• Grants and other forms of assistance

• Operational impacts

• Financial statements and audit visits

• Potential impact on audit opinions

• Communication of issues and impacts

Trang 3

Non-current physical assets

• Condition of assets significantly impacted

• May take a number of years to fully repair all major infrastructure assets

• Indicator of impairment under AASB 136.12(e)

– Need to assess recoverable amount of assets

– For not-for-profit entities value in use = depreciated replacement cost

– For-profit entities need to estimate future cash flows based on the present condition of the asset

Trang 4

• Impact on asset classes reported at “fair

value”

– Need to reflect actual condition of the assets – Is any damage to the assets likely to impact materially on their “fair value”?

– Where asset within a class is revalued AASB

116 requires the whole class to be revalued – Condition assessments often key input into valuations of infrastructure assets

Trang 5

• Useful lives and residual values

– Annual assessment required under AASB 116 – Have remaining useful lives been impacted by damage caused to the assets?

– Has the damage impacted on the amount

expected to be received on disposal?

– Is the present value of the asset below the

previous assessment of residual value?

Trang 6

• Write-offs and repairs

– At what stage are assets so damaged that they no longer represent assets?

– Decisions made to repair or replace assets

– Capital v maintenance

– Replacement of parts and significant components

• AASB 116 requires insurance recoveries to be record through profit or loss i.e revenue

• Cannot use insured value as “fair value”

Trang 7

• Asset management plans

– Have these been updated to reflect condition assessments of assets

– Update to reflect key decisions around

repairing and replacing assets

– Do assumptions used in assessing asset

values reflective of decisions in asset

management plans

Trang 8

• Practical issues

– Timing of impairment

– Impairment v revaluation

– Capacity to have valuations undertaken

– Need for valuations in future financial years – Determining revalued/impaired amounts in manner that reflects condition of assets

– Impact of new role for Queensland

Reconstruction Authority

Trang 9

Government assistance

• Accounting for government grants received

– AASB 1004 v AASB 120

– Grants received in advance v in arrears

– Reciprocal v non-reciprocal grants

– Grants for construction of assets (for-profit entities only)

• Other forms of government assistance offered

– Financial and non-financial assistance

– Impact on financial statements e.g assessment of receivables for impairment

Trang 10

Collection of donations

• Accounting for donations received

– Limited capacity for control over collection resulting in increased risk of fraud

– Transfer of money collected between

agencies

– Ultimate accountability for funds

Định dạng
Số trang	10
Dung lượng	262,77 KB