Here are some examples for property, plant and equipment:
- Valuation: When fair value (FV) is used – obtain reliable documentation and determine if the FV developed by management is appropriate. Consider use of specialist if unable to determine FV.
- Examine the residual values used if they are significant and appropriate
- Determine if significant parts are being depreciated separately (IFRS)
- Determine if the deprecation methods have been reviewed at the end of FS period
- Examine the information used to determine if useful life
- Recalculate the depreciation
Impairment
- Talk to management and employees who are part of the production process such as engineers, production managers
- Physically inspect the equipment- check if it is covered in tarps
- Hire a specialist
