Key management personnel compensation note: total, categories, management entity and other balances

Context

Telmar Industries SA (fictitious entity) is preparing its financial statements of 31 December 20X6. The file covers four parts: the map of related parties (the chief executive Mr Rémi Cassard, his mother Ms Odile Cassard, his brother Mr Hugo Cassard, Cassard Logistique SARL which he controls, the plan Telmar Retraite, Gestion Ardenne SAS which provides the chief financial officer, and the Republic of Zorvane); the compensation of the managers; the transactions and balances with Cassard Logistique SARL; the relationship with the State. As the preparer, you document each judgement; a reviewer then checks the file. 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

Key management personnel compensation note

Purpose of the workpaper

List the key management personnel, enter the compensation of the period for each of the five categories, compute the total, examine whether services are obtained from a management entity (judgement, no threshold imposed) and then disclose the amounts incurred, then identify the other transactions and balances with key management. Amounts are case data.

Questions of the file covered by this workpaper

• Compute the total compensation of the employed managers as the sum of the five categories.
• How to treat the services of Gestion Ardenne SAS and what amount to disclose?
• Record the short-term compensation expense payable.

• ScheduleLinks identifiedOpen
• MemoFacts about relativesOpen
• ScheduleCompensation of the employed managersOpen
• ContractContracts and planOpen
• InvoiceInvoices of Cassard Logistique SARLOpen
• ExtractStatement of the receivable from Cassard Logistique SARLOpen
• MemoManagement note on the termsOpen
• ContractRelationships with the StateOpen
• MemoMoving costsOpen