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Movement 2012 Equipment Furniture & Furnishings (in thousands of Swiss francs) Total
January 1, 2012 Gross carrying amount Accumulated depreciation Net carrying amount Movements in 2012: Additions Disposals Disposals depreciation Depreciation Total movements in 2012 December 31, 2012 Gross carrying amount Accumulated depreciation Net carrying amount 14,920 -13,015 1,905 2,836 -2,224 612 Furniture & Furnishings (in thousands of Swiss francs) 17,756 -15,239 2,517 125 -903 893 -1,220 -1,105 -41 40 -107 -108 125 -944 933 -1,327 -1,213 15,698 -12,688 3,010 2,877 -2,157 720 18,575 -14,845 3,730
January 1, 2011 Gross carrying amount Accumulated depreciation Net carrying amount Movements in 2011: Additions Disposals Disposals depreciation Depreciation Total movements in 2011 December 31, 2011 Gross carrying amount Accumulated depreciation Net carrying amount 15,290 -11,817 3,473 2,363 -2,175 188 17,653 -13,992 3,661
905 -497 284 -1,155 -463
624 -110 104 -86 532
1,529 -607 388 -1,241 69
15,698 -12,688 3,010
2,877 -2,157 720
18,575 -14,845 3,730
All equipment in the inventory is valued at cost less depreciation based upon the straight-line basis. Furniture and furnishings are depreciated over a ten year useful life. All other equipment is depreciated over a five year useful life. Heritage assets including donated works of art are not recognized as assets on the Statement of Financial Position.
buildings which were occupied at that date were valued at an amount determined independently by external consultants. and any directly attributable costs (such as the cost of site preparation. In such a case the revaluation increase is recognized on the Statement of Financial Performance. Initial recognition Result Test Following the transition to IPSAS from January 1. Check the accounting entries in this regard. generally the invoice price (less discounts). 2010. Changes in the carrying value resulting from revaluation will be credited or debited directly to revaluation surplus which forms part of net assets. initial delivery and handling costs or installation costs) of bringing the asset to working condition for its intended use. Select a sample of assets purchased during the year to verify the manner in which the costs were determined. contributed or donated) or for a nominal cost. which represents the estimated value of the building when new (deemed cost of construction) less accumulated depreciation and impairment. Note: Fair value will be determined as equal to WIPO’s replacement cost as established by the Procurement Department. except to the extent that an increase reverses a previous revaluation decrease that was debited to the Statement of Financial Performance in a previous period. Check the cost (includes purchase price. any costs directly attributable to bringing the asset to its current location and condition. import duties and non-refundable purchase taxes. and the initial estimate of dismantling and removing the item and restoring the site where it is located if WIPO is obliged to do so) depreciation and Impairment calculations. Total cost does not include any refundable taxes or other similar refundable costs. Where an asset is acquired at no cost (gifted.Tests conducted Sr. check whether the fair value of the asset as at the date of acquisition was used. Buildings which are brought into use after January 1. No 1. 2010 should be initially valued at cost. Total cost consists of the asset purchase price. The market price of a similar asset can Yes No KD ref Remarks 2 .
a total cost of least CHF 5’000 per unit for equipment and CHF 50’000 for building improvement projects). Note: other conditions set for capitalization of asset has useful life of more than one year.000 per building or building improvement project 3.also be used. equipment with a total cost of at least CHF 5. buildings and improvements to buildings with a total cost of at least CHF 50. Subsequent expenditure Subsequent expenses include major renovations and improvements to fixed assets that increase the future economic benefits or service potential of the fixed asset measured over its estimated useful life.000 per unit. beyond its most recently assessed standard of performance. 2. To capitalize subsequent expenses. 4. value was reduced to zero and an equal amount charged to expense. construction or donation. Asset Capitalization Verify for a sample of assets that were depreciated and capitalized whether they were owned by WIPO as a result of past events through purchase.e. check whether the carrying amount of the component that was replaced derecognized. Depreciation a) Straight-line depreciation method followed. In case of replacements. 3 . Check the accounting entries of a sample of replacements carried out. they must meet both of the following conditions: a) the relevant fixed asset must have a remaining estimated useful life of more than one year after the completion of the expense. and b) the cost of subsequent expense must exceed the cost threshold applicable to the class of assets (i.
5.. i) Check for a sample of assets that were revalued where the accumulated balance in revaluation had fallen below zero to verify whether it was reflected in the Statement of Financial Performance. i) Check whether this exercise was carried out during the year and carry out a substantive testing of a sample to determine whether carrying amounts and depreciation were calculated correctly. ii) Also look for any abnormalities such as total depreciation within few years of asset acquisition without matching impairments recorded etc. if the carrying amount of a class of assets is increased as a result of a revaluation. ii) Check the classification of assets adopted in the AIMS system for a sample of inventory to verify 4 . However. the increase shall be recognized in the statement of financial performance to the extent that it reverses a revaluation decrease of the same class of assets previously recognized in surplus or deficit. if the accumulated balance in revaluation surplus falls below zero. charged d) Separate useful lives of the component parts of permanent buildings including basic infrastructure. the increase shall be credited directly to revaluation surplus under net assets/equity. Note: Conversely. elevators. iii) Check if there were any assets where the more than due useful life was used for calculating depreciation. Initial Recognition and Revaluation Changes in the value of land will be accounted for by debiting or crediting fixed assets and crediting or debiting revaluation surplus which forms part of net assets/equity. heating and ventilating systems. However. If the useful life of an asset or asset component is changed. the carrying value at the date of the change of useful life is depreciated over the remaining portion of the revised useful life. etc.b) Depreciation charged on a monthly basis. c) Full month’s depreciation notwithstanding the date of receipt. have been established on the advice of an independent architectural consultant. any net decrease is recognized on the Statement of Financial Performance. The estimated useful lives of all fixed assets were to be reviewed periodically to determine whether revisions are required.
5 . iii) Check if there are any differences in the asset values i. 7.e as per the Financial Statements and the values given in the Fixed Assets Register 6. (para 12. plant and equipment should be determined as the difference between the actual net disposal proceeds and the carrying amount of the asset. Assets Retirement. Impairment Impairment loss should be recognized whenever the recoverable value of an asset falls materially below the carrying amount of the asset (net book value). The impairment loss is considered an expense in the statement of financial performance. Carry out the following tests to check depiction in the accounts for a sample of assets disposed during the period. Gains or losses arising from the retirement or disposal of an item of property. as appropriate. At each statement of financial position date. Disposal and Donation An item of property.whether their classification was in order and correct useful life was indicated. Check whether this was done.2.20 of WIPO IPSAS Manual). plant and equipment should be removed from the financial statements on disposal or when no future economic benefits or service potential is expected from its use. Disclosure Check whether the following disclosures were made (para 12. a review of all assets for any indication that an asset may be impaired will be undertaken. All equipment held pending disposal will be considered fully impaired from the date on which the equipment is taken out of service. a) cash proceeds in cash flows as investment activity-‘proceeds from the sale of PPE’ b) recognition of loss/profit c) removal of the asset from the statement of financial position 8.3 of WIPO IPSAS manual) a) Method of measurement (historical cost for WIPO) and the depreciation method used. The gain or loss should be included in the Statement of Financial Performance as an item of revenue or expense.
Building impairment. check the accounting adjustment ledger entries in respect of the following as outlined at para 12. Equipment impairment. the date of the revaluation. b) Equipment Equipment acquisition.along with the threshold and useful life by class. Land revaluation 6 . Equipment depreciation. This will include disclosure of the interest in the surface rights on the land below the existing HQ buildings and the restrictions imposed by the grants from the Canton of Geneva. use of an independent valuer. a) Buildings Building construction. c) The nature and effect of a change in an accounting estimate. Building depreciation. 9. b) Any contractual capital commitments and restrictions on titles. method and significant assumptions used in the valuation in the notes to the financial statements. Accounting procedure-Adjustment ledger entries Randomly. Building completion. Equipment disposal. e) Changes in revaluation surplus should be recognized on the Statement of Changes in Net Assets (statement III) by class of asset revalued. d) For property revalued to fair value. details of fair value and impairment calculations (if any) should be disclosed in the notes to the financial statements.5 of WIPO IPSAS Manual.