IAS 16 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Impairment linkage (IAS 36)
Professional file: construction and commissioning of a production site
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 16 workpaper
- Level
- Expert
- Estimated time
- ≈ 40 min
- Progress
- 0 / 4 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
'Impairment linkage (IAS 36)' workpaper: 20X2 indication and result of the group test.
Purpose of the workpaper
This workpaper documents only the link with IAS 36: indications of impairment, need for a test, receipt of the recoverable amount determined in the IAS 36 file, recognition of the loss and new depreciation basis. The test itself is not performed here. Compensation from a third party is documented separately from the loss.
Questions of the file covered by this workpaper
- 20X2 indication of impairment: compare the carrying amount of the site with the result of the IAS 36 test.
Documents in the file
Open the documents to pick out the relevant information.