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IAS 10Workpapers (Step 4 of 5)

Workpaper assignment

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.

Mission · workpaperWorkpaper · IAS 10L3 · Advanced

Documents

Loss report

Memo

Loss report

Filatures de Combreval SA (fictitious entity) runs two businesses: spinning (70% of revenue, profitable) and weaving. On 14 February 20X6, a fire destroys the weaving plant, whose carrying amount at 31 December 20X5 was 1,450,000. The insurer has accepted the claim and offers compensation of 900,000.

Going concern: assessment up to the authorisation date

Plant fire and plan to discontinue a business after the reporting date: going concern and disclosures

5 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

Objective

In progress
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
Advanced
Estimated time
≈ 40 min
Progress
0 / 3 steps done (review excluded)

Context

Filatures de Combreval SA (fictitious entity) suffers, after its 20X5 reporting date, a fire at its weaving plant and then decides to discontinue that business. You assess the consequences for the 20X5 statements, with little guidance.

Assignment

Going concern up to 24 March 20X6

Purpose 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.

Questions of the file covered by this workpaper

  • Can the 20X5 statements be prepared on a going concern basis?
  • What should be done with the lawyer's letter?

Documents in the file

Open the documents to pick out the relevant information.

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