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 32Workpapers (Step 4 of 5)

Workpaper assignment

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

Documents

Company profile and case conventions

Memo

Company profile and case conventions

Verdane SA (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; coupons are paid in arrears; case convention (pedagogical assumption, not attributed to IAS 32): the tax effect is ignored; the rate of a similar liability is the estimate of the entity; the entries are illustrative.

Classification of an issued instrument: financial liability, equity instrument or compound instrument: Warrants

File on issued financial instruments: liability / equity classification, split of a convertible bond, distributions and offsetting (IAS 32)

9 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

Verdane SA (fictitious entity) closes its accounts on 31 December 20X6. The preparer builds the file of the instruments issued and the bank balances of the year, submitted to a review check: preference shares, warrants, redeemable units, convertible bond, dividends and offsetting with a bank. 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

Classification of the preference shares, the warrants and the redeemable units

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 redeemable preference shares.
  • Classify the warrants.
  • Classify the redeemable units in view of the legal opinion.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template