Cases
Practical case
Foncière Calypso SA (fictitious entity) holds two buildings at the 31 December 20X5 year-end. Building A, let to companies, includes a floor used by the entity's administrative departments. In building B, the entity provides security, reception and maintenance of the common areas for all tenants. The classification of each must be decided.
Your assignment
Compute the occupied share of building A and the share of services of building B; identify the missing information; judge the classification of building A and then of building B; record the entry of building A (case data) and present its 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 1Table
Building A, acquired for 3,600,000 EUR paid in cash: total area of 2,400 m², of which 2,220 m² let to third-party companies and 180 m² used by the entity's administrative departments. A single title deed is on file; the file does not say whether the occupied floor could be sold separately (or leased out separately under a finance lease).
The figures of the documents, gathered for your work.
| Item | Value | Found in |
|---|---|---|
| Total area of building A (m²) | 2,400 units | |
| Area used by the entity in building A (m²) | 180 units | |
| Price paid for building A | €3,600,000.00 | |
| Annual income from the services of building B | €120,000.00 | |
| Total annual income of building B | €1,500,000.00 | |
| Internal indicative threshold for the occupied portion | 10% | |
| Insurance premium 20X6 of building A | €42,000.00 |
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.
Building A
Building B
Internal policy
Insurance premium
7 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
Compute the occupied share of building A and the share of services of building B.
Part 1 · Calculation
Compute the occupied share of building A and the share of services of building B.
Result: Share of services in the income of building B (in %)
Task 2Missing information
What information is missing to assess the separability of the occupied floor?
Task 3Professional judgement
Classify building A. Justify.
Task 4Professional judgement
Classify building B. Justify.
Task 5Journal entries
Record the entry of building A.
Part 1 · Journal entry · Journal entries
Entry 1 of 1
One line = one account and one side. Add a line if the entry needs more; the balance check updates live.
Line 1
Line 2
Task 6Effects on the financial statements
What is its 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
Task 7Conclusion
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 / 9).
Document this file
These working papers use the data and results of this case.
Normative references