Substantiation file requirements – PPE fair value assessment

Client Substantiation File.
Information required Responsibility Completed Reference
A formal fair value assessment for each class of revalued PPE setting out the difference between the carrying value and the expected fair value.      
A summary of the major assumptions used. For example, these could include:      
  • If the fair value has been estimated by use of indices, what information the indices are based upon. A copy of the relevant indices should be retained.
  • Where market-based information is used, the source of the information. A copy of the information should be retained.
  • If the fair value is estimated by reviewing changes in unit rates, the source of the information. A copy of the unit rate information, together with any workings should be retained.