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IAS 28Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 28L1 · Fundamental

Documents

Group profile and case conventions

Memo

Group profile and case conventions

Calvane Group SA (fictitious entity) closes its accounts on 31 December 20X6. Case conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IAS 28): the cost of Brissan equals the investor’s share of the net fair values at acquisition, so there is neither goodwill nor bargain income; Brissan applies Calvane’s policies, has no other comprehensive income in 20X6 and its fair values are those of independent valuations; the entries are illustrative.

Equity method: cost, goodwill or bargain income, fair value adjustment, uniform policies, share of profit and of other comprehensive income, dividends and closing carrying amount

Significant influence: rebuttable 20 % presumption, indicators, definitions and basic equity method (cost, share, dividends)

4 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 28 workpaper
Level
Foundation
Estimated time
≈ 75 min
Progress
0 / 5 steps done (review excluded)

Context

Calvane Group SA (fictitious entity) holds interests in Brissan (30 % counting its subsidiary), Tolbec (15 %) and Mirel (18 %). You prepare the consolidation department’s note: which are associates, and how to account for Brissan in 20X6?

Assignment

Equity method for Brissan: cost, share of profit, dividend and closing amount

Purpose of the workpaper

List the cost, the share of the fair value of net assets at acquisition, the adjusted profit (uniform policies, extra depreciation of the fair value excess), other comprehensive income and dividends, then reconcile the opening carrying amount with the closing one. Percentages, fair values and lives are case data; the adjusted profit of the associate is computed by hand (no multi-line schedule is modelled).

Questions of the file covered by this workpaper

  • Brissan: record the initial investment at cost.
  • Brissan: compute Calvane’s share of profit.
  • Brissan: record the share of profit.
  • Brissan: what is Calvane’s share of the dividends and how to account for it?
  • Brissan: record the dividend received.
  • Brissan: compute the closing carrying amount of the investment.

Documents in the file

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