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IAS 28Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 28L4 · Expert

Documents

Group profile and file conventions

Memo

Group profile and file conventions

Halvern Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. File conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IAS 28): fair values are those of independent valuations; the adjusted profits of the associates are file data, after harmonisation of policies; the depreciation of the fair value excess is straight line with no residual value; no tax; no transaction costs; the equity-method entries for Sovrel are not requested and the cumulative effect excludes them; the entries are illustrative. The 20 % presumption is rebuttable and significant influence is a matter of judgement.

Assessing significant influence: rebuttable 20 % presumption, indicators, potential voting rights, exemptions, held for sale and distinction from joint control: Dunmar — 16% of the voting rights

Group file: significant influence, equity method, eliminations, losses and impairment, cessation of influence (IAS 28)

9 documents8 sections to document
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Guided mode

Section 1 of 8

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
Expert
Estimated time
≈ 50 min
Progress
0 / 4 steps done (review excluded)

Context

Halvern Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. The preparer draws up the year’s associates file, submitted to a reviewer: significant influence in Corsel and Dunmar, the equity method for Pelvane, Quorin and Sovrel (including the 40 % interest retained after a loss of control), Vorlan’s eliminations, Rimel’s losses, the impairment of Tarvik and the loss of influence in Orvel. 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

Assessment of significant influence in Corsel and Dunmar

Purpose of the workpaper

List the direct and indirect voting rights, the potential rights currently exercisable and the indicators of influence (board, policy decisions, material transactions, interchange of personnel, technical information), then support the conclusion. The 20 % presumption is rebuttable in both directions: it is never an automatic threshold and the indicators prevail over the percentage.

Questions of the file covered by this workpaper

  • Draw up the file plan: entities, questions of influence, equity method, eliminations, losses and cessation.
  • Corsel: compute Halvern’s total voting rights, direct and indirect.
  • Corsel: does Halvern have significant influence, and is the 20 % presumption confirmed?
  • Dunmar: with 16 % of the voting rights, do the indicators rebut the presumption of no influence?

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