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IAS 19Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 19L4 · Expert

Documents

Company profile and case conventions

Memo

Company profile and case conventions

Sorbane SA (fictitious entity) makes furniture; it closes its accounts on 31 December and its functional currency is the euro. Case conventions (pedagogical assumptions): amounts in EUR; all short-term benefits are settled within twelve months; for the managers plan, the benefits paid and the employer contribution occur on 31 December and net interest is computed at the start-of-year rate on the opening net liability; linear attribution of the benefit; the events of the workshop plan take effect on 1 July 20X6, the loss on the prior remeasurement and the net interest of the first half-year being already recognised in it; the rates, the flows and the horizon of the ceiling are data from the actuary; the tax effect is ignored.

Plan event: prior remeasurement, past service cost, settlement result and net interest for the rest of the period

Year-end employee benefits file: plan classification, short-term benefits, cost of a defined benefit plan, plan event and asset ceiling

9 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 19 workpaper
Level
Expert
Estimated time
≈ 90 min
Progress
0 / 5 steps done (review excluded)

Context

Sorbane SA (fictitious entity), a furniture manufacturer, closes its accounts on 31 December 20X6. You prepare the year-end employee benefits file: one defined contribution plan and three defined benefit pension plans, the short-term benefits, and the entries of the year. The file will be reviewed by the responsible partner. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.

Assignment

Amendment and transfer of the workshop plan

Purpose of the workpaper

Date the event, remeasure the net liability (asset) with the current assumptions and the current fair value of the assets, then determine the past service cost or the settlement result and the net interest for the rest of the period. The remeasured amounts are case data; the classification of the event remains a supported judgment.

Questions of the file covered by this workpaper

  • In which order to treat the events of the workshop plan, and how to classify them?
  • Compute the past service cost of the amendment.
  • Compute the settlement loss of the transfer.
  • Compute the net interest of the second half-year on the remeasured net liability.
  • Record the past service cost.
  • Record the settlement loss.

Documents in the file

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