(c) (i) Procedures on portfolio of investments
Generally 1 mark for each procedure explained:
– Agree the fair value of the shares held as investments to stock market share price listings
– Confirm the original cost of the investment to cash book and bank statements
– Discuss the accounting treatment with management and confirm that an adjustment will be
made to recognise the shares at fair value
– Review the notes to the financial statements to ensure that disclosure is sufficient to comply with
the requirements of IFRS 9
– Enquire with the treasury management function regarding disposals and reinvestment
– Review board minutes to confirm the authorisation and approval of the amount invested
– Confirm the number of shares held to supporting documentation such as dividend received
vouchers
– Review documentation relating to the scope and procedures of the new treasury management
function