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 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.

Eliminations with the associate: upstream and downstream transactions, losses evidencing impairment, contributions of non-monetary assets and deferred 2014 amendments

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

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 28 workpaper
Level
Expert
Estimated time
≈ 60 min
Progress
0 / 5 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

Eliminations of Vorlan’s transactions

Purpose of the workpaper

For each transaction with the associate, list the direction (upstream or downstream), the assets still held and the margin, eliminate the unrealised profit to the extent of the investor’s interest, and examine whether a loss evidences impairment and whether the contribution concerns a business. The interest, margins and amounts are case data; the 2014 amendments are not applied.

Questions of the file covered by this workpaper

  • Vorlan: compute the total unrealised profit of the upstream and downstream inventory transactions.
  • Vorlan: compute the profit eliminated on the upstream transaction.
  • Vorlan: compute the profit eliminated on the downstream transaction.
  • Vorlan: how is the gain on the contribution of land treated? Compute the gain on the contribution and the part to eliminate.
  • Vorlan: compute the carrying amount of the investment after the downstream eliminations.
  • Vorlan: record the elimination of the profit on the upstream transaction.
  • Vorlan: record the elimination of the profit on the downstream transaction.
  • Vorlan: record the elimination of the gain on the contribution.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template