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IAS 32Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IAS 32L4 · Expert

Documents

Profile of the cooperative and case conventions

Memo

Profile of the cooperative and case conventions

Orsan Cooperative (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; the terms are those of the documents; case convention (pedagogical assumption, not attributed to IAS 32): the conditions of the exception for the A units and the liquidation units are all met according to the legal opinion; the right of set-off with Alvia is enforceable in all circumstances.

Classification of an issued instrument: financial liability, equity instrument or compound instrument: Member shares M1

Offsetting, puttable instruments, cooperative member shares and the FICE project: a classification and presentation file

7 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

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 32 workpaper
Level
Expert
Estimated time
≈ 60 min
Progress
0 / 3 steps done (review excluded)

Context

Orsan Cooperative (fictitious entity) groups farmers. It has issued member shares and redeemable fund units, holds grain contracts and has balances with two counterparties. You prepare the classification and presentation note for the closing date of 31 December 20X6.

Assignment

Classification of the member shares and the redeemable units of Orsan

Purpose of the workpaper

Record the contractual terms of the instrument, the settlement clauses, the contingent events, the currency of the exercise price and, where relevant, the redemption rights of the holder. The classification rests on these terms, not on the intention of the parties or the name of the instrument; amounts and terms are case data and the classification remains a supported judgment.

Questions of the file covered by this workpaper

  • Classify the member shares M1 and M2.
  • Classify the redeemable units A and B.
  • Do the liquidation units fall under the same exception as the A units? What difference in conditions?
  • Compute the total of the instruments classified as equity.
  • Compute the total of the instruments classified as financial liabilities.

Documents in the file

Open the documents to pick out the relevant information.

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