Preparation of total comprehensive income, the reconciliation of equity and the plan of the notes: accounting policies, judgments and estimates

Context

Corvane SA (fictitious entity), an industrial group, closes its accounts on 31 December 20X6 under IAS 1. The audit committee asks for a transition note on IFRS 18: application date, classification of the IAS 1 requirements (transferred, unchanged, modified), departure proposal from management, capital disclosure and preparation of the 20X6 comparative under the new presentation. IAS 1 remains the standard applicable to the 20X6 financial statements.

Assignment

Accounting policy information: requirement kept, location changed

Purpose of the workpaper

Record profit or loss, the other comprehensive income items split between items that will be reclassified and items that will not, the movements in equity, the accounting policies and the judgments and estimates of the entity. Compute total comprehensive income, reconcile the closing balance of equity, then prepare the plan of the notes. The amounts, the policies and the assumptions are case data; the materiality of the information remains a judgment.

Questions of the file covered by this workpaper

• Is accounting policy information still required and on what criterion?
• Prepare the capital disclosure and say what the case does not allow to conclude about its destination.

• MemoGroup profile and case conventionsOpen
• MemoIFRS 18 transition noteOpen
• ScheduleMap of the 9 areas of IAS 1 requirementsOpen
• Extract20X6 statement of profit or loss under IAS 1 (extract)Open
• MinutesBoard of directors: departure proposalOpen
• MemoCapital managementOpen
• MemoContext note: April 2026 agenda decisionOpen
• InvoiceInvoice for a software licenceOpen