IAS 20 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Asset grant file: presentation, release and effect on profit or loss
Income grant and asset received free of charge: matching to costs and fair value
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 20 workpaper
- Level
- Advanced
- Estimated time
- ≈ 60 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Agrilogis SAS (fictitious entity, food-processing business) closes its books on 31 December 20X5. It obtained three forms of support in 20X5: a programme grant spread over three years, a grant for training costs already incurred, and a warehouse transferred by a municipality for a price below its value.
Assignment
File of the asset received as a grant
Purpose of the workpaper
For each asset financed in part by a grant (one instance per asset or per presentation), enter the cost, the grant, the useful life and the gross depreciation of the IAS 16 baseline, then compute the annual release (deferred income), the net cost and the reduced depreciation (deduction) and compare the net effect on profit or loss. An asset received as a grant is handled separately (fair value and consideration paid). Justify the presentation chosen: the choice is open to the entity and no amount imposes it.
Questions of the file covered by this workpaper
- Compute the value of the grant received in the form of an asset.
- Record the three forms of support.
Documents in the file
Open the documents to pick out the relevant information.