IAS 12 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
IAS 12 Income Taxes — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Current tax computation: Corvanne — carryback
Professional file: IFRS tax closing of an international industrial group
Section 1 of 9
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 12 workpaper
- Level
- Expert
- Estimated time
- ≈ 35 min
- Progress
- 0 / 5 steps done (review excluded)
Context
The Valdrise group (fictitious entities) manufactures industrial valves and pumps. Valdrise SA, the parent, is based in Lustrania; its subsidiaries are Corvanne SA in Cadoria (loss-making), Arlesque SA in Merovia (acquired on 1 July 20X7) and Valdrise Vescaria in Vescaria (a low-tax country); the four countries are fictitious. You are the preparer of the consolidated tax closing file at 31 December 20X7; the head of consolidation is the reviewer. The financial statements will be authorised on 4 March 20X8. The current tax of Arlesque and Valdrise Vescaria and the deferred tax movements prior to the closing have been recorded; the closing adjustments remain to be made. The tax rules, rates and amounts calculated by the advisers are case data.
Assignment
Current tax computation (Valdrise SA, Corvanne carryback).
Purpose of the workpaper
For one taxable entity and one period, check that the levy is within IAS 12, move from accounting profit to taxable profit using the tax adjustments given by the case, apply the rate enacted or substantively enacted at the reporting date (or the graduated scale), determine the current tax balance after instalments and, where relevant, the asset arising from carrying a tax loss back, then post the entries.
Questions of the file covered by this workpaper
- Which entities, authorities and rates does the file cover?
- Calculate the current tax of Valdrise SA, its balance and Corvanne's carryback asset.
- Record the closing entries.
Documents in the file
Open the documents to pick out the relevant information.