Absence of Established Policy for Assessing Impairment of Property and Equipment
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA has no policy to check whether its buildings, equipment, and other property have lost value over time (impairment), which is required by international accounting standards. Without this policy, the reported value of property and equipment (about P2.6 billion) cannot be verified as accurate.
Why It Matters
Recommended Actions
- Formulate a policy in relation to impairment of PE assets to review its carrying amount and ascertain fair presentation of PE account balances in the books, in accordance with IPSAS 21
- And
Original Audit Finding Excerpt
"the absence of an established policy for assessing impairment of Property and Equipment (PE) required in Paragraph 26 of IPSAS 21 on Impairment of Non-Cash-Generating Assets as a basis on whether impairment losses, if any, should have been recognized on the PE balances"