Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IAS 24Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 24L2 · Intermediate

Documents

Control structure

Memo

Control structure

Control structure: Orlane Holding SA controls Orlane Industrie SA and publishes consolidated financial statements available to the public. The Orlane Foundation controls Orlane Holding SA, and therefore the entity ultimately, and does not publish consolidated financial statements.

Note on transactions and balances with related parties: content, allowances, categories, arm's length and aggregation: Allowance on the Brisval receivable

Transactions, balances and allowances with an associate and a subsidiary: content of the note, totals by category and arm's length

6 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 24 workpaper
Level
Intermediate
Estimated time
≈ 60 min
Progress
0 / 5 steps done (review excluded)

Context

Orlane Industrie SA (fictitious entity) closes its books on 31 December 20X6. It is controlled by Orlane Holding SA, itself controlled ultimately by the Orlane Foundation; it has significant influence over Brisval SA (associate) and holds Orlane Services SAS (subsidiary). In 20X6 it sold goods to Brisval in two deliveries, received services from Orlane Services and settled the related payable in cash; it also monitors a receivable from Brisval, part of which is impaired. Management prepares the related party note.

Assignment

Note on transactions and balances with related parties

Purpose of the workpaper

Identify the transactions and balances by category of related party, compute the totals by category, the closing allowance (opening, expense, write-offs) and the net balance of the receivable, assess whether an arm's length statement can be substantiated and whether items may be aggregated (judgements, no threshold imposed), then prepare the illustrative entries and the note. Amounts are case data.

Questions of the file covered by this workpaper

  • Compute the total of the sales of the year to the associate.
  • Record those credit sales.
  • Compute the total of the services received from the subsidiary.
  • Record the cash settlement of the payable.
  • Recompute the closing allowance and check it against the amount recorded.
  • Compute the net balance of the receivable from Brisval SA.
  • Record the allowance expense of the year.
  • Can an arm's length statement be made for the sales to Brisval SA and for the services of Orlane Services SAS?

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template