IAS 12 · Workpapers (Step 4 of 5)
Workpaper assignment
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IAS 12 Income Taxes — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Temporary differences schedule: Arlesque goodwill
Professional file: IFRS tax closing of an international industrial group
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 12 workpaper
- Level
- Expert
- Estimated time
- ≈ 40 min
- Progress
- 0 / 4 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
Schedule of temporary differences (tooling, warranties, lease, goodwill).
Purpose of the workpaper
For one statement of financial position item (asset or liability) of a taxable entity, determine the tax base and the taxable or deductible temporary difference, review the exceptions (goodwill, initial recognition, single transaction giving rise to equal differences), compute the gross deferred tax at the rate expected on reversal, then post the entries and pass the items on to the note.
Questions of the file covered by this workpaper
- Determine the tax bases, temporary differences and deferred tax of Valdrise SA.
- Assess the exceptions: lease and Arlesque's goodwill.
- Record the closing entries.
Documents in the file
Open the documents to pick out the relevant information.