Properties- Accounting and Audit Issues

The aim of this course is to consider in detail the practical issues arising from the accounting and audit of properties.

Content will include:

Accounting issues

• Investment properties:
  • Definition, measurement, transfers, disclosures, mixed use
  • Impact on P&L and reserves
• Properties within property, plant and equipment:
  • Capital and revenue expenditure, major inspections, cost or revaluation policy
  • Rent concessions and lease incentives
• Properties held as stock
• Transfers between current and fixed assets and between PPE and investment properties
• Provisions:
  • Dilapidations
  • Deferred tax - making and reversing provisions, indexation allowance and the impact on revaluation reserve
• Sale and repurchase agreements
• Sale and lease back arrangements
• Leasing:
  • UK GAAP and IFRS 16

Audit issues

• Key risk areas, including title, valuations, relying on experts, going concern, revenue recognition, provisions and laws and regulations
• Evidence gathering issues