IAS 16 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Depreciation calculation: Refractory lining — 20X1 pro rata
Professional file: construction and commissioning of a production site
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 16 workpaper
- Level
- Expert
- Estimated time
- ≈ 45 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Céramiques de la Haute Vallée (a fictitious company) has a 31 December reporting date and measures its property, plant and equipment under the cost model; its policy deducts grants related to assets from their carrying amount. In 20X1, it built an industrial building with its own teams and bought a tunnel kiln from a foreign supplier; the site is commissioned during the year. You are in charge of the year-end file for 20X1 and 20X2: preparation of the workpapers, proposed entries, review of the notes, answers to the reviewer's notes and conclusion of the file.
Assignment
'Depreciation calculation' workpaper: 20X1 time apportionment by component and 20X2 charge.
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 20X1 depreciation by component.
- Propose the 20X1 depreciation entry.
- Calculate the 20X2 depreciation.
- Propose the 20X2 entries: depreciation and revision of the dismantling liability.
Documents in the file
Open the documents to pick out the relevant information.