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Substantive Procedure Assignment | Custom Assignment Help

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November 29th, 2019

Substantive procedure required to check the assertion related to ownership is to examine the documents related to title or the deed for the ownership proof. Further, the auditors shall verify the ownership of Shimmer Pty Ltd regarding the secret ingredients for special formula. Further the auditor shall determine that the intangible asset fulfil the recognition criteria as per AASB 138 to be recognized by Beautiful Hair Ltd as intangible asset in its balance sheet. Further, the transaction shall fulfil the acquisition criteria as per AASB 3 to be recorded as asset acquisition in the books of Beautiful Hair Ltd (Johnstone, Gramling and Rittenberg 2013).

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Substantive procedure required to check the assertion related to occurrence is to examine the documents related to addition to intangible asset of the company. Further, as per AASB 10 the company shall be established as an acquirer that is the company has obtained the control on Shimmer Pty Ltd. If as per AASB 10 the company cannot be regarded as the acquirer, it cannot recognize the intangible asset in its balance sheet. Further, the intangible asset must be capable of being divided or separated from the acquiree and transferred, sold, rented or licensed with identifiable liability or asset for related contract (Sultana et al. 2015).

 

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