IAS 10 · Workpapers (Step 4 of 5)
Workpaper assignment
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IAS 10 Events after the Reporting Period — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Schedule of adjustments for events after the reporting period: Batch B
Inventory sold at a loss and investments down after the reporting date: adjust or disclose?
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 10 workpaper
- Level
- Intermediate
- Estimated time
- ≈ 40 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Domaine de Sarvelle SA (fictitious entity) is approving its 20X5 statements. Two batches of wine were sold after the reporting date and listed shares lost value. You determine the adjustments and the disclosures.
Assignment
Adjustments schedule: batches A and B
Purpose of the workpaper
For adjusting events, quantify at the reporting date the adjustment of the litigation provision, the additional loss allowance on receivables, the inventory write-down indicated by a later sale and the effect of a fraud discovered before authorisation; compute the tax effect at the rate given by the case, the adjusted profit and post the closing entries.
Questions of the file covered by this workpaper
- Compute the net realisable value of each batch.
- Determine the value of each batch at the reporting date and the write-down.
- Post the adjusting entry at 31 December 20X5.
Documents in the file
Open the documents to pick out the relevant information.