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:
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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.
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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.
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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:
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Depreciation Tracing Report:
- Detail the process of tracing previous depreciation.
- Include findings regarding depreciation methods, rates, and periods used historically.
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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.
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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.
