Non-current assets - part 3

In this lesson

1. 0:00 Government grants recognition and accounting
2. 1:41 Audit procedures for government grants
3. 3:26 Investment properties classification and valuation
4. 4:42 Audit procedures for investment properties
5. 6:30 Non-current assets held for sale criteria
6. 7:43 Audit procedures for assets held for sale
7. 9:24 Financial instruments classification and valuation
8. 10:42 Audit procedures for financial instruments

About this lesson

You'll discover the key classification risks, audit procedures, and evidence-gathering techniques needed to verify these complex balance sheet items. This covers essential content for the AA module, helping you confidently handle the audit procedures and assertions that examiners test most frequently. Government grants require careful review of documentation to understand terms, obligations, and potential repayment conditions. You'll learn to verify that revenue grants are matched to expenditure and capital grants are released to profit or loss over the asset's useful life, and when to request written representations from management. Investment properties present classification as the primary audit risk. You'll explore how to confirm they meet the definition (property held for rental or capital appreciation, not owner-occupied), whether the cost or fair value model is applied correctly, and how to inspect physical evidence and review independent valuations. The lesson also covers non-current assets held for sale, including the strict criteria for classification, the need for impairment testing, and correct presentation as current assets. Finally, you'll understand the high inherent risk surrounding financial instruments due to their complexity and estimation uncertainty. The lesson walks through obtaining external confirmations, recalculating amortisation, reviewing hedging contracts, and ensuring fair value measurements comply with IFRS 13—all essential audit procedures to prevent overvaluation and ensure proper disclosure.

Duration: 12m