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IAS 10Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

Version of this content

IAS 10 Events after the Reporting Period — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

WorkpaperIAS 10 — Events after the Reporting PeriodL2 · L3 · L4

Going concern: assessment up to the authorisation date

2 missions8 sections to document40 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

List the decisions of the governing bodies and the adverse events that occurred after the reporting date up to the authorisation date, compare cash needs with the financing available, conclude on the basis of preparation of the financial statements (intention, or no realistic alternative but, to liquidate or to cease trading) and on the update of disclosures about conditions existing at the reporting date.

8 sections · 17 blocks · 0 calculations · 0 entries

  • IAS 10 §14
  • IAS 10 §15
  • IAS 10 §16
  • IAS 10 §19
  • IAS 10 §20

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

2 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Plant fire and plan to discontinue a business after the reporting date: going concern and disclosures
Case tasks documented here
  • Can the 20X5 statements be prepared on a going concern basis?
  • What should be done with the lawyer's letter?
1

Inputs

Inputs

  • Entity's situation at the reporting date (activities, results, financing)

    TextRequired

    TWO_BUSINESSES_SPINNING_PROFITABLE

  • Decisions of the governing bodies after the reporting date

    TextRequired

    WEAVING_DISCONTINUED_SPINNING_KEPT

  • Adverse events after the reporting date

    TextRequired

    FIRE_14_FEBRUARY_20X6_AND_EMPLOYEE_CLAIM

  • Cash forecast horizon (months)

    Number

    18 months

    Case data: the horizon is given by the case; it is not set by IAS 10.

  • Confirmed financing available

    Number

    2,000,000

  • Forecast cash needs over the horizon

    Number

    700,000

  • Cash headroom (financing − needs)

    Number

    1,300,000

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Going concern assessment

Analysis

IAS 10 §14IAS 10 §15

  • Points reviewed

    ChecklistRequired

    • Decisions and events considered up to the authorisation date
    • Intention to liquidate or to cease trading
    • No realistic alternative
    • Later deterioration: going concern assumption reconsidered
    • Assumption no longer appropriate: fundamental change in the basis, not a mere adjustment
4

Update of disclosures

Analysis

IAS 10 §19IAS 10 §20

  • Points reviewed

    ChecklistRequired

    • New information about a condition existing at the reporting date
    • Update even without effect on amounts (contingent liability)
5

Conclusions

Judgment

IAS 10 §14IAS 10 §15IAS 10 §19

  • Basis of preparation of the financial statements

    JudgmentRequired

    Going concern assumption appropriate

    Going concern assumption appropriate / Going concern assumption not appropriate

    Management's professional judgement based on the facts of the case; disclosures of material uncertainties fall under IAS 1 (IAS 10, para. 16, wording before IFRS 18).

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

    NO_INTENT_TO_LIQUIDATE_REALISTIC_ALTERNATIVE_FINANCED

  • Is an update of disclosures required?

    JudgmentRequired

    Yes, disclosures to update

    Yes, disclosures to update / No

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

    EMPLOYEE_CLAIM_NOW_QUANTIFIED

6

Disclosures

Disclosure

IAS 10 §16IAS 10 §19

  • Points reviewed

    ChecklistRequired

    • Disclosures updated in the light of the new information
    • IAS 1 going concern disclosures (reference in IAS 10, para. 16)

    The disclosures themselves fall under IAS 1 and are not taught here. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).

7

Conclusion

Conclusion

  • Reasoned conclusion on going concern and disclosures

    ConclusionRequired

8

Normative references

References

  • Normative references

    References

9

Checks and financial statement impact

  • Going concern conclusion documentedPass
  • Update reviewedPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0