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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.

Offsetting a financial asset and a financial liability: legally enforceable right, intention to settle and net amount presented

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

9 documents8 sections to document
0 / 5 sections completed
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 32 workpaper
Level
Expert
Estimated time
≈ 60 min
Progress
0 / 4 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

Offsetting with Elvane Bank

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

  • Elvane Bank: are both offsetting criteria met?
  • Elvane Bank: compute the net amount presented.

Documents in the file

Open the documents to pick out the relevant information.

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