Cases
Practical case
Alcor Capital SA (fictitious entity) manages funds and concludes that it is an investment entity. It holds unconsolidated subsidiaries, interests in structured entities, sponsored a securitisation vehicle and controls a vehicle supported by a commitment. You prepare the IFRS 12 disclosures for 20X6.
Your assignment
State the disclosures on the investment entity status and on its unconsolidated subsidiaries; qualify the three vehicles using the definition of a structured entity; compute the total carrying amount of the interests in unconsolidated structured entities; deal with the past involvement as a sponsor, the controlled vehicle and the support; record the subscription of units of the Helion fund, present its effect and conclude. One document is not useful.
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.
Autonomous professional situation
As on a real engagement: no method, no checklist and no hints. You identify the issues yourself, organise the work and defend your conclusion.
6 documents: open each one to read it.
Document 1Memo
Alcor Capital SA (fictitious entity) closes its accounts on 31 December 20X6. Case conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IFRS 12): management concludes that the entity is an investment entity; the subscription of units of Helion is paid in cash and these units are measured at fair value through profit or loss; the entry is illustrative.
The figures of the documents, gathered for your work.
| Item | Value | Found in |
|---|---|---|
| Ownership interest of Alcor in Orsay | 80% | |
| Share of voting rights of Alcor in Orsay | 75% | |
| Units of Helion held | €1,250,000.00 | |
| Units of Helion subscribed in 20X6 | €600,000.00 | |
| Subordinated notes of Nerval held | €540,000.00 | |
| Financial support commitment to Carmel | €300,000.00 | |
| Attendance fees | €26,000.00 |
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.
Group profile and case conventions
Management note on investment entity status
Helion fund and Nerval vehicle
Verity and Carmel vehicles
Management note on the disclosures to provide
Board meeting on the remuneration policy
Organise your work freely: deal with each point, then argue your conclusion.
Task 1Analysis
Which disclosures does Alcor give on its investment entity status, despite the absence of a typical characteristic?
Task 2Analysis
Which disclosures on the unconsolidated subsidiaries Nivel and Orsay?
Task 3Professional judgement
Are Helion, Nerval, Verity and Carmel structured entities, and which of them are unconsolidated?
Task 4Analysis
What is the total carrying amount of the interests in unconsolidated structured entities, and what must be presented?
Part 1 · Calculation
What is the total carrying amount of the interests in unconsolidated structured entities, and what must be presented?
Task 5Analysis
Verity: is the past involvement as a sponsor with no interest at the closing date to be disclosed?
Task 6Professional judgement
Carmel: which disclosures for a structured entity controlled by an investment entity, including the support commitment?
Task 7Journal entries
Record the subscription of units of the Helion fund.
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 8Effects on the financial statements
What is the effect of the entry 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 9Conclusion
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 / 11).
Document this file
These working papers use the data and results of this case.
Normative references