Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IAS 16Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 16L2 · Intermediate

Documents

Surveyor's allocation report (1 January 20X1)

Schedule

Surveyor's allocation report (1 January 20X1)

Total price: 2,000,000. Land: 500,000. Building: 1,500,000, allocated as follows: structure 1,030,000, useful life 40 years, residual value 50,000; roof 150,000, 15 years; heating, ventilation and air-conditioning 180,000, 12 years; docks and automatic doors 120,000, 10 years; statutory safety inspection performed just before the purchase 20,000, valid for 5 years. Nil residual value for the other parts. Straight-line method for all parts.

Component approach: Initial breakdown of the warehouse

Logistics warehouse: components and replacement

3 documents8 sections to document
0 / 5 sections completed
Guided mode

Section 1 of 8

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 16 workpaper
Level
Intermediate
Estimated time
≈ 45 min
Progress
0 / 4 steps done (review excluded)

Context

Logistica Sud (a fictitious company) acquired a logistics warehouse on 1 January 20X1 for 2,000,000, including land. It applies the cost model and its reporting date is 31 December. A surveyor allocated the price between the land and the significant parts of the building. In 20X6, several items of expenditure are incurred on the warehouse. The chief accountant asks you to review the depreciation schedule and the treatment of the 20X6 expenditure.

Assignment

'Componentisation' workpaper: land, significant parts, useful lives and residual values.

Purpose of the workpaper

Allocate the cost of the asset between land and the significant components, with the useful life and residual value of each; the table must add up to the total cost. When a component is replaced or a major inspection is performed, complete the dedicated section: the new cost is capitalised and the carrying amount of the replaced part is derecognised.

Questions of the file covered by this workpaper

  • Which elements of the purchase price must be recognised and depreciated separately? Is the land depreciated?
  • Calculate the annual depreciation charge for the warehouse for 20X1 to 20X5.
  • Calculate the carrying amount of the old system to be derecognised on 2 January 20X6.
  • What journal entries do you record in 20X6?

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template