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IAS 1Case studies (Step 3 of 5)

Practical case

Step 3 of 5
File · Progressive casePath L1 → L4L1 · Fundamental

Marenval: from the complete set of financial statements to the move to IFRS 18

Marenval SA, a fictitious food distributor; Delmar SA, a fictitious supplier; Lacour Banque, a fictitious lender; consolidated IFRS statements, 31 December year-end, amounts in euros. Facts and amounts are case data; conclusions come from the standard or from judgement and are flagged as such; no rounding is needed (whole amounts, case convention); the counterparts of entries are case conventions; covenant ratios and thresholds are contract data, not rules of the standard.

1 document5 tasks
0 / 5 tasks completed
Period
31 December N
Standards
IAS 1 — Presentation of Financial Statements
Levels
0 / 4 levels validated
Current level
L1 · Guided≈ 90 min
Assistance levelFull guidance · strong assistance
  • Method: shown
  • Checklist: shown
  • Hints: shown
  • Step-by-step work: shown

Case brief

L1 · Guided · 31 December N

Level 1: the complete set, the basis of preparation and offsetting

Progressive case in four levels: (1) the complete set, the basis of preparation, accrual revenue and offsetting; (2) the classification of the statement of financial position at 31 December N; (3) performance, equity and a loan with covenants; (4) the professional closing file (covenant breach, departure request, judgements and estimates) and the transition to IFRS 18.

Marenval prepares its statements for year N (IAS 1 is announced at this level). The complete set's components, the basis of preparation, the North division's accrual revenue and the presentation of the Delmar receivable must be identified.

Fundamental level: the method, help and references are shown.

Method

  1. Read the brief and the assignment.
  2. Open each document and spot the relevant data.
  3. Carry out the work in the suggested order.
  4. Submit, then read the conclusion and the model answer.

File checklist

  • Open each piece (0 / 1 consulted) · to do
  • Answer the questions of the level (0 / 5) · to do
  • Validate the level, then read the conclusion · to do

Events

The file, period by period

2 / 6 stages reached

  1. Context · Dated fact of the file

    Marenval: from the complete set of financial statements to the move to IFRS 18

    Marenval SA, a fictitious food distributor; Delmar SA, a fictitious supplier; Lacour Banque, a fictitious lender; consolidated IFRS statements, 31 December year-end, amounts in euros. Facts and amounts are case data; conclusions come from the standard or from judgement and are flagged as such; no rounding is needed (whole amounts, case convention); the counterparts of entries are case conventions; covenant ratios and thresholds are contract data, not rules of the standard.

  2. Initial event · L131 December N · Current stage

    Level 1: the complete set, the basis of preparation and offsetting

    Marenval prepares its statements for year N (IAS 1 is announced at this level). The complete set's components, the basis of preparation, the North division's accrual revenue and the presentation of the Delmar receivable must be identified.

    Pieces added

    • Exhibit 1: Marenval's closing file (case data)

  3. New information · L231 December N · Upcoming: unlocks after the current stage

    Upcoming stage

  4. New period · L3Year N · Upcoming: unlocks after the current stage

    Upcoming stage

  5. New period · L4Year N (2026) and year 2027 · Upcoming: unlocks after the current stage

    Upcoming stage

  6. Conclusion · Upcoming: unlocks after the current stage

    Upcoming stage

Documents

Case documents

1 document to work from at this level.

Document 1Supporting document

Exhibit 1: Marenval's closing file (case data)

  • Marenval prepares a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, notes, a budget for N+1 for the board and a three-year store opening plan.
  • Management has no intention to liquidate Marenval or cease trading; the credit line is renewed until 31 December N+2.
  • North division: cash sales of €3,150,000 and December credit sales of €220,000, collected in January N+1.
  • Delmar: a receivable of €130,000 (rebate receivable) and a payable of €95,000 to the same supplier; no standard requires or permits offsetting (case convention).

Data

Facts of the file

Entity
Marenval SA, a fictitious food distributor; Delmar SA, a fictitious supplier; Lacour Banque, a fictitious lender; consolidated IFRS statements, 31 December year-end, amounts in euros. Facts and amounts are case data; conclusions come from the standard or from judgement and are flagged as such; no rounding is needed (whole amounts, case convention); the counterparts of entries are case conventions; covenant ratios and thresholds are contract data, not rules of the standard.
Period
31 December N
Current level
L1 · Guided
Standards
IAS 1 — Presentation of Financial Statements

Pieces carried over from earlier levels

First level: all the data is in the brief and the pieces of this level.

Questions

5 parts to answer, marked when you submit the level.

  • Information to identify1
  • Questions3
  • Calculations1

Information to identify

Find the useful facts in the pieces before concluding.

Part 1 · Classification · Recognition

Classify each document in the file according to whether or not it is part of the complete set of financial statements.

Drag each item into its category, or tap the category under the item.

To sort5

  • The statement of changes in equity

  • The statement of cash flows

  • The notes

  • The N+1 budget

  • The store opening plan

Component of the complete set0

    Outside the complete set0

      4 more questions will appear once the current question is complete.

      Complete the question to continue.

      Workspace

      Your working draft for this file: points noted, leads, intermediate calculations.

      Saved on this device only; never graded.

      Conclusion

      Answer every part to submit the level and see the conclusion.

      Normative references

      • IAS 1 §10
      • IAS 1 §15
      • IAS 1 §16
      • IAS 1 §19
      • IAS 1 §25
      • IAS 1 §27
      • IAS 1 §32
      • IAS 1 §54
      • IAS 1 §60
      • IAS 1 §66
      • IAS 1 §69
      • IAS 1 §72A
      • IAS 1 §72B
      • IAS 1 §74
      • IAS 1 §76ZA
      • IAS 1 §82
      • IAS 1 §82A
      • IAS 1 §99
      • IAS 1 §106
      • IAS 1 §117
      • IAS 1 §122
      • IAS 1 §125
      • IAS 1