IAS 32 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Offsetting a financial asset and a financial liability: legally enforceable right, intention to settle and net amount presented: Deposit and loan — Alvia Bank
Offsetting, puttable instruments, cooperative member shares and the FICE project: a classification and presentation file
Section 1 of 8
Objective
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 / 4 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
Offsetting with Alvia and with Brenval
Purpose of the workpaper
For each counterparty, record the amounts of the asset and of the liability, the right of set-off (current, not contingent on a future event, enforceable in the normal course of business, on default and on insolvency) and the settlement practices. Both criteria must be met: otherwise the gross amounts are presented. Amounts and facts are case data.
Questions of the file covered by this workpaper
- Alvia: are both offsetting criteria met?
- Alvia: compute the net amount presented.
- Brenval: can the receivable and the debt be offset?
Documents in the file
Open the documents to pick out the relevant information.