Case 3: Depreciation estimates and related expenses Managers can select the most appropriate methods for write-down values of PPE and other assets. Various depreciation methods are available to managers that may or may not comply with GAAP or IFRS. Whether or not depreciation method comply or otherwise with GAAP/IFRS, nevertheless, there is need for transparency in financial reporting Required: For each analytical procedure listed below (a - b), examine a potential misstatement in the property management accounts it could help to detect if the techniques used are: When computing the ratio of depreciation expense to the related property, plant, and equipment accounts and compare to prior years' ratios. (5 marks) When comparing monthly or annual repairs and maintenance with previous years. (5 marks) When computing ratio of insurance expense to the related property, plant, and equipment accounts and compare to prior years ratios. (5 marks) Case 3: Depreciation estimates and related expenses Managers can select the most appropriate methods for write-down values of PPE and other assets. Various depreciation methods are available to managers that may or may not comply with GAAP or IFRS. Whether or not depreciation method comply or otherwise with GAAP/IFRS, nevertheless, there is need for transparency in financial reporting Required: For each analytical procedure listed below (a - b), examine a potential misstatement in the property management accounts it could help to detect if the techniques used are: When computing the ratio of depreciation expense to the related property, plant, and equipment accounts and compare to prior years' ratios. (5 marks) When comparing monthly or annual repairs and maintenance with previous years. (5 marks) When computing ratio of insurance expense to the related property, plant, and equipment accounts and compare to prior years ratios. (5 marks) Case 3: Depreciation estimates and related expenses Managers can select the most appropriate methods for write-down values of PPE and other assets. Various depreciation methods are available to managers that may or may not comply with GAAP or IFRS. Whether or not depreciation method comply or otherwise with GAAP/IFRS, nevertheless, there is need for transparency in financial reporting Required: For each analytical procedure listed below (a - b), examine a potential misstatement in the property management accounts it could help to detect if the techniques used are: When computing the ratio of depreciation expense to the related property, plant, and equipment accounts and compare to prior years' ratios. (5 marks) When comparing monthly or annual repairs and maintenance with previous years. (5 marks) When computing ratio of insurance expense to the related property, plant, and equipment accounts and compare to prior years ratios. (5 marks) Case 3: Depreciation estimates and related expenses Managers can select the most appropriate methods for write-down values of PPE and other assets. Various depreciation methods are available to managers that may or may not comply with GAAP or IFRS. Whether or not depreciation method comply or otherwise with GAAP/IFRS, nevertheless, there is need for transparency in financial reporting Required: For each analytical procedure listed below (a - b), examine a potential misstatement in the property management accounts it could help to detect if the techniques used are: When computing the ratio of depreciation expense to the related property, plant, and equipment accounts and compare to prior years' ratios. (5 marks) When comparing monthly or annual repairs and maintenance with previous years. (5 marks) When computing ratio of insurance expense to the related property, plant, and equipment accounts and compare to prior years ratios
