Objective: Your task is to conduct a comprehensive review of fixed assets and depreciation records, tracing previous depreciation and creating a new roll-forward depreciation schedule.
Instructions:
Depreciation Tracing:
Access and audit the provided files pertaining to fixed assets and depreciation.
Trace the history of depreciation taken from the records.
Identify the methods, rates, and periods used for depreciation.
Creating a Roll Forward Depreciation Schedule:
Develop a new depreciation schedule starting from January 1, 2020.
The schedule must include the following:
Year-to-Date (YTD) Depreciation.
Any additions, disposals, or sales of fixed assets.
There should be no activity reflected in the schedule.
Utilizing Previous Journal Entries (JE):
Refer to the Journal Entries made by previous accountants as a guide.
Incorporate relevant information from previous JEs into your analysis and schedule.
Submission Requirements:
Depreciation Tracing Report:
Detail the process of tracing previous depreciation.
Include findings regarding depreciation methods, rates, and periods used historically.
Roll Forward Depreciation Schedule:
Clearly present a new schedule starting from January 1, 2020.
Include YTD Depreciation, additions, disposals, sales, and any necessary explanations or notes.
References to Previous Journal Entries (JE):
Highlight and refer to specific JEs made by previous accountants that informed your analysis.
Guidelines:
Ensure accuracy and thoroughness in your review and schedule creation.
Provide clear references and explanations for your findings.
Use the provided files and information as a foundation but aim to create an updated and comprehensive schedule.
Additional Notes:
If you encounter discrepancies or irregularities, make note of these in your report.
In case of any uncertainties or need for further information, do not hesitate to seek clarification.