Cases
Practical case
Agrilogis SAS (fictitious entity, food-processing business) closes its books on 31 December 20X5. It obtained three forms of support in 20X5: a programme grant spread over three years, a grant for training costs already incurred, and a warehouse transferred by a municipality for a price below its value.
Your assignment
Assess the reasonable assurance and the costs the programme grant compensates; identify the missing information; compute the share for 20X5 and the value of the grant received in the form of an asset; record the three forms of support (case data) and present their effect; conclude.
Work on this file as you would in practice: read the situation, open the documents, sort the useful information, then carry out the work requested. The solution is revealed once you submit.
Advanced level: no help, the work is grouped by kind.
4 documents: open each one to read it.
Document 1Contract
Agreement of 1 January 20X5 with the regional agency: grant of 240,000 EUR for a three-year recruitment and training programme (20X5 to 20X7), whose budgeted costs are 180,000 EUR in 20X5, 240,000 EUR in 20X6 and 180,000 EUR in 20X7. The agency has notified the approval of the programme; management has the capacity to carry it out. Annual payment on supporting documents; the actual costs of 20X5 are in line with the budget.
The figures of the documents, gathered for your work.
| Item | Value | Found in |
|---|---|---|
| Programme grant | €240,000.00 | |
| Budgeted programme costs in 20X5 | €180,000.00 | |
| Budgeted programme costs in 20X6 | €240,000.00 | |
| Budgeted programme costs in 20X7 | €180,000.00 | |
| Training grant | €30,000.00 | |
| Training costs of 20X5 | €50,000.00 | |
| Fair value of the warehouse received | €80,000.00 | |
| Cash payment for the warehouse | €20,000.00 | |
| Tariff 20X6 | €3,200.00 |
Not every document matters: identify those that affect the accounting treatment.
Part 1 · Classification · Analysis
Sort each document: does it affect the accounting treatment?
Drag each item into its category, or tap the category under the item.
Programme grant agreement
Letter from the chamber of agriculture
Deed of transfer of the warehouse
Tariff 20X6
8 tasks in the order of the file. Calculations, entries and effects on the financial statements are marked; written answers are self-assessed against the solution.
Task 1Analysis
What is the nature of each of the three forms of support and which recognition rules apply?
Task 2Missing information
What information is missing to allocate the programme grant?
Task 3Professional judgement
Does reasonable assurance exist and which costs does the programme grant compensate? Justify.
Task 4Calculation
Compute the share of the programme grant for 20X5.
Part 1 · Calculation
Compute the share of the programme grant for 20X5.
Task 5Calculation
Compute the value of the grant received in the form of an asset.
Part 1 · Calculation
Compute the value of the grant received in the form of an asset.
Task 6Journal entries
Record the three forms of support.
Part 1 · Journal entry · Journal entries
Entry 1 of 3
One line = one account and one side. Add a line if the entry needs more; the balance check updates live.
Line 1
Line 2
Part 2 · Journal entry · Journal entries
Entry 2 of 3
One line = one account and one side. Add a line if the entry needs more; the balance check updates live.
Line 1
Line 2
Part 3 · Journal entry · Journal entries
Entry 3 of 3
One line = one account and one side. Add a line if the entry needs more; the balance check updates live.
Line 1
Line 2
Line 3
Task 7Effects on the financial statements
What is their effect on the financial statements?
Part 1 · Classification · Analysis
State the direction of the effect on each financial statement aggregate.
Financial position (balance sheet)
Profit or loss
Other comprehensive income
Equity
Part 2 · Calculation · Analysis
Quantify the effect on the aggregates concerned.
Result: Amount of the effect — Equity
Task 8Conclusion
Write the conclusion.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Complete every item of the file to submit it (0 / 12).
Document this file
These working papers use the data and results of this case.
Normative references