Cases
Practical case
Silvane SA (fictitious entity) holds financial assets at fair value and a hedging derivative, and is financed by a loan whose rate depends on an environmental target, a bond and trade payables, part of which is financed by a provider. You prepare the framework of the disclosures for the closing date of 31 December 20X6.
Your assignment
Group the instruments of the two line items into reconciled classes; total the assets by fair value level and measure the fair value difference of the bond; say which items enter the hedging note; share the roles between IFRS 7 and IFRS 13; settle, for the master netting arrangement with the bank and for the supplier finance, what falls under IAS 32, IFRS 7 and IAS 7; say what the 2024 and 2023 amendments add as disclosures and what to make of IFRS 18; record the fair value gain on the listed shares and state its effect; 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.
7 documents: open each one to read it.
Document 1Memo
Silvane SA (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; the fair value levels are those given by management under IFRS 13; case convention (pedagogical assumption, not attributed to IFRS 7): the year is a year to which the 2024 amendments apply; IFRS 18 is not applied to the year.
The figures of the documents, gathered for your work.
| Item | Value | Found in |
|---|---|---|
| Line item of non-current financial assets | €2,100,000.00 | |
| Listed shares | €1,200,000.00 | |
| Unlisted fund units | €800,000.00 | |
| Hedging derivative | €100,000.00 | |
| Fair value gain on the listed shares (other comprehensive income) | €150,000.00 | |
| Line item of financial liabilities | €3,000,000.00 | |
| Bank loan with an environmental target | €1,500,000.00 | |
| Carrying amount of the bond | €980,000.00 | |
| Fair value of the bond | €1,010,000.00 | |
| Trade payables | €520,000.00 | |
| Payables financed by the provider | €300,000.00 | |
| Donation to an association | €9,000.00 |
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.
Company profile and case conventions
Non-current financial assets and fair value levels
Financial liabilities
Hedges
Offsetting and supplier finance
Management questions on IFRS 18 and the amendments
Sponsorship note
Organise your work freely: deal with each point, then argue your conclusion.
Task 1Analysis
Group the instruments of the two line items into classes reconciled to the line items.
Task 2Analysis
Total the financial assets by fair value level.
Part 1 · Calculation
Total the financial assets by fair value level.
Task 3Analysis
Measure the difference between the fair value and the carrying amount of the bond.
Part 1 · Calculation
Measure the difference between the fair value and the carrying amount of the bond.
Task 4Analysis
Which items enter the hedging note?
Task 5Analysis
What division of roles between IFRS 7 and IFRS 13 for fair value?
Task 6Professional judgement
For the master netting arrangement with the bank and the supplier finance, what do IAS 32, IFRS 7 and IAS 7 decide?
Task 7Professional judgement
Do the 2024 amendments call for disclosures on the loan and on the shares?
Task 8Analysis
What weight should IFRS 18 have for the disclosures of the year?
Task 9Journal entries
Record the fair value gain on the listed shares.
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 10Effects 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
Part 2 · Calculation · Analysis
Quantify the effect on the aggregates concerned.
Result: Amount of the effect — Equity
Task 11Conclusion
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 / 15).
Document this file
These working papers use the data and results of this case.