IAS 2 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Inventories note
Group inventory review: scope, cost formulas, transfer to property, plant and equipment and disclosures
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 2 workpaper
- Level
- Expert
- Estimated time
- ≈ 30 min
- Progress
- 0 / 4 steps done (review excluded)
Context
The Altavia group (fictitious entities) comprises three subsidiaries: Altavia Métaux, a copper commodity broker-trader; Domaine Altavia, a vineyard that makes wine from its harvest; Altavia Machines, which builds packaging machines to order and sells standard spare parts. As head of consolidation, you are reviewing the group's inventories at 31 December 20X4 and preparing the note on inventories.
Assignment
Amount recognised as an expense and note workpaper.
Purpose of the workpaper
Reconcile the amount of inventories recognised as an expense with the movement in inventories, taking into account unallocated overheads, abnormal amounts, write-downs and reversals, then prepare the complete inventories note.
Questions of the file covered by this workpaper
- Calculate the corrected closing inventories, the cost of inventories sold and the amount of inventories recognised as an expense.
- Which information do you present in the note on inventories?
Documents in the file
Open the documents to pick out the relevant information.