Must be original and pass Turnitin please, I will run it trough before its submi
ID: 2621048 • Letter: M
Question
Must be original and pass Turnitin please, I will run it trough before its submitted.Thank you.
The accountant uses significant judgment in the valuation of assets. How does the accountant use estimates and judgment in the valuation of property, plant, and equipment? Is it ethical for an accountant to use estimates and varying methodology to achieve desired corporate results? Participate in follow-up discussion by challenging or confirming your classmates' positions. Support your challenges with external references. Your initial post should be 250-500 words
Explanation / Answer
An accountant needs to meet IAS for valuing assets such as property, plant, and equipment. The cost of the asset should be measured "Reliable" can use bills and invoices for equipment auditing. A significant judgment can be used however a disclaimer of assumptions under which the accountant has valued should be written under the page (below the bottom margin) or a separate disclosure of assumptions can also be made. However, if there is no disclosure of the methodology used to arrive at the estimates are given then it is unethical as a cost of plant and equipment can be manipulated and balance sheet can be inflated with. However, he/she cannot use varying methodologies it to arrive at a desired corporate result as this practice is strictly unethical and a qualified opinion can be raised by the external auditor while inspecting the books and it qualified opinion is not good for any good corporation. For depreciation purposes, the accountant can expand or contract the life of the equipment depending upon the wear and tear of the equipment which is ethical and can use different types of depreciation methods such as straight line, accelerated depreciation (Ideal used). But an accountant should never manipulate the books to achieve a desired corporate result that is highly unethical in nature.
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