IAS 1 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Preparation of total comprehensive income, the reconciliation of equity and the plan of the notes: accounting policies, judgments and estimates: Total comprehensive income
File on the presentation of financial statements under IAS 1: fair presentation, classification of liabilities, comprehensive income, notes and transition view to IFRS 18
Section 1 of 8
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 1 workpaper
- Level
- Expert
- Estimated time
- ≈ 75 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Mervane SA (fictitious entity), an industrial company, closes its accounts on 31 December 20X6; the financial statements will be authorised for issue on 28 February 20X7. The preparer builds the presentation file submitted to a review check: classification of a borrowing whose covenant is not met at the closing date, going concern with a working capital deficit, compliance statement, comprehensive income and changes in equity, and a transition note to IFRS 18. IAS 1 remains applicable until IFRS 18 applies (annual periods beginning on or after 1 January 2027). Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.
Assignment
Comprehensive income, equity and plan of the notes
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
- Compute the subtotal of other comprehensive income that will be reclassified.
- Compute total comprehensive income.
- Reconcile closing equity.
- Which information is to be prepared for the notes?
Documents in the file
Open the documents to pick out the relevant information.