G2 Other Current Assets

Based on the information provided by the client in their annual questionnaire, use this workpaper to confirm the closing balances of current assets.

Trading Stock

If the difference between a reasonable estimate of stock on hand at year end and the value of stock on hand at the start of the income year is $5,000 or less, then a small of medium business entity has the option to not change the value of trading stock at year end, and not account for any change in value of trading stock at year end. A small and medium business entity is defined as an entity with aggregated turnover of less than $50 million.

  1. Enter the account code for stock on hand.
  2. From the client information, enter the value of stock on hand as at balance date.
  3. Confirm correct valuation method used.
  4. Determine the reason behind variances.
  5. Create manual journal to update general ledger if required.

Work in Progress

Work in progress includes goods, property or services in the process of production but not yet completed.

  1. Enter the account code for work in progress.
  2. From the client information, enter the value of work in progress as at balance date.
  3. Confirm correct valuation method used.
  4. Determine the reason behind variances.
  5. Create journal to update general ledger, if required.

Cash on hand

Cash on hand can be used to describe the cash amounts held on the client’s premises as at balance date. Often referred to as cash on hand, petty cash or till/cash floats.

  1. Enter the account code for cash on hand.
  2. From the client information, enter the value of cash on hand at balance date.
  3. Determine the reason behind variances.
  4. Create journal to update general ledger, if required.

Goodwill

Goodwill refers to those unidentifiable benefits that accrue to an entity by virtue of circumstances such as a favourable location, good customers or supplies, and motivated employees. Generally only goodwill that has been purchased can be recognised on the balance sheet.

  1. Enter the account code for goodwill.
  2. From client information, enter amount of prepayments at balance date.
  3. Determine the reason behind variances.
  4. Create journal to update general ledger, if required.