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IAS 24Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 24L4 · Expert

Documents

Links identified

Schedule

Links identified

Links identified at 31 December 20X6: Mr Rémi Cassard is chief executive of the entity and controls Cassard Logistique SARL, which provides the entity with transport services and buys used equipment from it. Telmar Retraite is the retirement plan of the entity employees. Gestion Ardenne SAS provides the entity with the services of its chief financial officer. The Republic of Zorvane holds a golden share and sits on the board: it has significant influence over the entity (case data).

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

Related party file of a group: mapping, key management compensation, transactions and balances, State (IAS 24)

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

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

Note on transactions and balances

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 transport invoiced by Cassard Logistique SARL.
  • Record the transport services received.
  • Recompute the closing allowance and check it.
  • Compute the net balance of the receivable.
  • Record the allowance expense.
  • Can arm's length be stated for the transport, and may the three invoices be aggregated? Justify.

Documents in the file

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