(c) (i) Valuation of property, plant and equipment (PPE):
– Review depreciation policies for reasonableness by comparison to prior year, industry practices, the entity’s replacement policy and the profits/losses arising on disposal of assets.
– For a sample of assets recalculate the depreciation charge for the year and agree to the entity asset register.
– Perform a proof in total calculation of depreciation, considering the timing of additions and disposals and compare this expectation to the actual charge, and investigate any significant differences.
– If any assets have been revalued during the year then assess the reasonableness of the valuer. In particular consider their experience, independence, scope of work and assumptions used.
– Agree the revalued amounts to a valuation report, for a sample recalculate the revaluation surplus and agree to the revaluation reserve.
– For a sample of the new surgical equipment additions vouch the cost to a recent purchase invoice.
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