Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p42
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 42/57)
Character Range: 126049–129304

accounts and determine whether they agree with the trial balance.  Discuss recoverability thereof with management.

  49.   Enquire whether management have updated their impairment calculations in respect of goodwill or other intangibles.  Consider whether there have been any indicators of impairment for intangibles and enquire whether management have appropriately considered discount rates, growth rates, etc.

  50.   Enquire about the basis for recording these accounts and the amortisation methods used.

  51.   Compare balances of related expense accounts with those of prior periods and obtain explanations for significant variations with management.

  Discuss the classification between current and non‑current accounts with management.

Investment Property

  52.   Obtain a schedule of investment property and determine whether it agrees with the trial balance.

  53.   Enquire whether the accounting policy applied to investment property is consistent with prior periods.

  54.   Update with management the acquisitions and disposals to investment property and accounting for gains and losses on disposals or de‑recognition.  Determine whether all significant transactions have been accounted for appropriately.

  55.   Consider whether there are any indicators of impairment and whether any investment property was subject to recent valuations.

Loans Payable

  56.   Obtain from management a schedule of loans payable and determine whether the total agrees with the trial balance.

  57.   Enquire whether there are any loans where there has been a change to the terms and conditions or management has not complied with the provisions of the loan agreement, including any debt covenants.  Assess whether loans have been appropriately classified as current or non‑current in the financial report.

  58.   Where material, consider the reasonableness of interest expense in relation to loan balances.

  59.   Enquire whether loans payable are secured.  Review loan and working capital facilities.  Enquire if options to extend terms have been exercised or if any debt requires refinancing.

Trade Payables

  60.   Enquire about the accounting policies for initially recording trade payables and whether the entity is entitled to any allowances given on such transactions.

  61.   Obtain and consider explanations of significant variations in account balances from previous periods or from those anticipated.

  62.   Obtain a schedule of trade payables and determine whether the total agrees with the trial balance.

  63.   Enquire whether balances are reconciled with the creditors' statements and compare with prior period balances.  Compare turnover with prior periods.

  64.   Consider whether there could be material unrecorded liabilities.

  65.   Enquire whether payables to shareholders, those charged with governance and other related parties are separately disclosed.

Other Liabilities and Contingent Liabilities

  66.   Obtain a schedule of other liabilities and determine whether the total agrees with the trial balance.

  67.   Compare major balances of related expense accounts with similar accounts for prior periods.

  68.   Enquire about approvals for such other liabilities, terms of payment, compliance with