ACCA F8考试内容：Non-current Assets Cycle
1 Control Objectives
Control objectives for the non-current asset cycle include the control objectives for the purchases cycle, plus the following:
To ensure that all material capital acquisitions and disposals are approved by management and/or the board.
To ensure that only capital expenditure is recognised as an asset.
To ensure that tangible and intangible non-current assets are properly depreciated or amortised.
To ensure that impairments are identified and accounted for.
2 Internal Control Examples
Internal controls include the internal controls for the purchases cycle, plus the following:
Annual capital expenditure ("capex") budgets approved by the board of directors.
Detailed records including asset description, location, acquisition date, cost, depreciation/amortisation method.
Periodic physical inspection of assets and comparison with the asset register.
Approval of useful lives and depreciation/amortisation methods used.
Regular maintenance and servicing by suitably qualified engineers.
Adequate appropriate insurance (e.g. buildings against fire or flood, equipment against breakdown and vehicles against accidents).
Safekeeping of documents of title (e.g. title deeds to property kept by the bank, vehicle registration documents kept in a locked safe).
3 Tests of Control
Test of controls include those for the purchases cycle, plus the following:
For a sample of material non-current assets acquired confirm that approval is evidenced (e.g. signed capex request or board minute).
Review asset register to confirm that it is up-to-date and evidences regular physical inspection (e.g. date of inspection and comment on physical condition).
Observe procedure of recording physical assets leaving/being removed from the client's premises.
For example, delivery vehicles leaving and returning to depots, or laptop computers taken from the office to work from home.