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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.

Depreciation calculation: 20X6 charge after the replacements

Logistics warehouse: components and replacement

3 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

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 / 5 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

'Depreciation calculation' workpaper: schedule by component before and after the replacement.

Purpose of the workpaper

Calculate the charge for the period under the method retained (straight-line with time apportionment, diminishing balance, units of production or by component) from the basis, the residual value and the remaining useful life, then the closing carrying amount. Only the method retained is filled in; the entry and the impact on the financial statements follow from it.

Questions of the file covered by this workpaper

  • Calculate the annual depreciation charge for the warehouse for 20X1 to 20X5.
  • Calculate the depreciation charge for 20X6 after these transactions.
  • What journal entries do you record in 20X6?

Documents in the file

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