Land can be labeled in separate classes and accounts: bare land (no buildings), land with personal buildings land with properties of third parties and land with layers. Buildings contain installations, fix, diversifications and infrastructure.
報稅公司 of “Lands” and “Constructing projects” has the following significant targets:
– Make positive of the substance existence of this sort of assets
– Confirm whether or not the organization is the real proprietor of its personal property
– Make sure that property have been assessed and registered in the harmony sheet according to their appropriate value
– Thinking about their servicing situation and age, draw pertinent conclusions with regard to justification of depreciation measures as effectively as depreciation amount and fee used:
– Make certain that buy and transferals of fixed property are reflected in the bookkeeping by way of pertinent registrations
– Evaluate the threats to possession of fixed belongings (e.g. fire) and compare them with insurance coverage offers signed.
Accounting and technical suggestions
Auditing includes at least the following:
– Verify the justification of house on land and other immovable residence, property titles, cadastral registers, mortgage registers and purchase contracts on the day of stability sheet
– Every single fixed asset in this segment ought to be crosschecked and correspond with: purchase price, cadastral evaluation, insurance policy worth, accounting benefit, home loan alienation worth, product sales worth, creation price (genuine or theoretical), substitution price, price from assessment and tax reviews
– Remark on background of figures for all modifications occurring in the respective accounts of these investments
– Examine every indication or aspect related to accounts for lands and buildings and decide regardless of whether modifications need to be regarded as investments or utilization fees
– Commence with internet site visits in purchase to observe any new installations or damages for the objective of crosschecking them with respective fees in the bookkeeping
– Identify eventual non-occupied regions
– Confirm the ageing issue and maintenance of structures and crosscheck with amortizations made until the second of audit
– Make certain that necessary amortizations have been correctly made, in conformity with pertinent laws and rules and check out calculations created for these amortizations
– Contemplate potentials for fraudulent bookkeeping: unjustified acquire at extremely higher price, unjustified sale at very lower price tag, inclusion of utility fees in fastened assets or vice-versa, free-of-charge lease contracts, cost-free-of-demand contracts for third get-togethers, use of company installations for private functions, deviations amongst genuine value, registered value and the cost in the genuine act
– For new buildings, examine the true cost, eventual destruction costs and confirm regardless of whether best delivers have been noticed
– Analyze how the value of structures is determined and no matter whether staff wages are entered in the bookkeeping
– Make positive that values have been modified to mirror alterations in alternative value
– Detect circumstances when rates have been hidden in notary functions
– Analyze processes applied so that each investment obtain is right away lined by insurance coverage packages
– Take a look at bookkeeping for damages in the properties
– Take a look at commissions and payments to intermediaries throughout acquire of lands and buildings
– Examine actions to preserve set assets in excellent condition to assure their ideal use (upkeep providers, periodic inspections, and so on.)
– Check for true insurance policy, home loan, pledged by the organization which affect land or immovable house. If indeed, take a look at the guaranties applied and at least check out: the nature of guaranties, character and sum of commitments guarantied and beneficiaries
– In the annex, point out changes in land and immovable house occurred during audit
Specific interest ought to be devoted to accounting treatment method of set assets in this area:
a) Accounting therapy for land obtain and sale
1. When land is entered in a firm’s assets, the value is debited in account 211 “Land” as contribution benefit, purchase price tag or credit history respectively in account for “principal belongings (individual or group one) or in the account “Companions account for contributions in the business” or “Suppliers of fixed property”. Account 211 registers the worth of land owned by the company. It is critical to distinguish in between different accounts, based mostly on the character of element factors of fastened assets:
– Bare lands (no structures)
– Enhanced lands (with channels, etc)
– Underground and earlier mentioned soil: phrases utilized when the organization is not the proprietor of the three aspects hooked up to the identical part of terrain: land, underground and over soil
– Exploited lands (carriers, mineral levels) which are the only aspects matter to depreciation
– Household terrains with a single much more buildings.
two. During sales, the price of origin for aspects offered and that of amortization, if any, are taken from the respective accounts. Their web sum is debited to account 652 “Accounting worth of aspects for set property sold” at the identical time, account 752 “Incomes from factors of set property marketed” is credited in the debit of account 462 “Request to receive from mounted assets bought”. Provisions are closed in credit of the respective subdivision of account 78 “Reacquisition of amortizations and provisions”.
b) Accounting therapy of sale-obtain operations in construction
In scenario a development is purchased for a price which does not independent land price tag from building cost, only the developing price part is subject matter to amortization. Consequently, when a business buys a constructing, we need to make certain no matter whether it has divided the worldwide obtain expense in proportion with the relative value attributed to every single of the two components (account 211 “Land” and 212 “Developing” in the complete worth of immovable home).
1. When buildings are entered as organization residence, account 212 “Buildings” or its subdivisions are debited:
– For incoming value,
– For acquire cost,
or for the actual expense of home generation, in credit score of:
– Account one hundred and one “Principal property (principal or person)” or account 4561 “Associates – Account for contributions in society”,
– Account 404 “Suppliers of fixed assets or other respective accounts,
– Account seventy two “Manufacturing of fastened property”.
two. In situation of revenue, the worth of origin for properties offered and respective amortizations are taken from their respective accounts. Their big difference is debited to account 652 “Accounting price of factors for fixed belongings bought” at the exact same time, account 752 “Incomes from components of set property marketed” is credited in the debit of account 462 “Ask for to receive from set property sold”. Provisions are shut in credit score of the respective subdivision of account seventy eight ” Re-acquisition of amortizations and provisions”.