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 34Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIAS 34 — Interim Financial ReportingL2 · L3 · L4

Bridge between year-to-date and period: seasonal revenues, uneven costs, change in accounting policy and change in estimate in the final interim period

9 missions8 sections to document75 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Record the year-to-date amounts and the published amounts of the previous periods, the seasonal or uneven nature of the revenues and costs, the effect of a change in accounting policy and the feasibility of restating it, then the revised annual amount of an estimate. Reconcile the year-to-date amount and the period, assess the treatment of uneven revenues and costs (neither anticipated nor deferred unless the same treatment would be appropriate at the annual closing), compute the restated amount or judge prospective application, and prepare the information for the annual notes. The facts are case data; each conclusion remains a supported judgment.

8 sections · 33 blocks · 6 calculations · 0 entries

  • IAS 34 §28

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

9 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Year-to-date measurement: same policies, seasonal revenues, uneven costs, estimates and materiality
Case tasks documented here
  • Compute second-quarter revenue from the year-to-date amounts.
  • Can the proposed smoothed revenue be presented for the second quarter?
  • Compute the half-year profit before tax from the quarters.
  • Reconcile the opening year-to-date amount, the profit of the quarter and the year-to-date amount presented in the draft.
  • Can half of the cost of the August maintenance shutdown be recognised in the first half?
1

Facts and data

Inputs

  • Year-to-date and published amounts of the previous periods: source, scope, closing dates

    TextRequired

    YEAR_TO_DATE_REVENUE_AT_31_MARCH_AND_30_JUNE_OF_ESTIVALE

  • Revenues and costs concerned: seasonal, cyclical or uneven nature, date of the expense, treatment at the annual closing

    Text

    SEASONAL_GARDEN_FURNITURE_REVENUE_DELIVERED_AND_NOT_DEFERRABLE_AT_YEAR_END

  • Change in accounting policy: nature, classes concerned, possibility of determining the cumulative effect at the beginning of the year

    Text

  • Change in estimate: amount estimated in the previous periods, new annual estimate, no separate report for the final period

    Text

  • Amount of the first quarter

    Number

  • Amount of the second quarter

    Number

  • Amount of the third quarter

    Number

  • Year-to-date amount at the interim date

    Number

    3,460,000

  • Year-to-date amount at the previous interim date

    Number

    1,180,000

  • Opening year-to-date amount (previous interim date)

    Number

  • Amount of the period added to the year-to-date amount

    Number

  • Year-to-date amount reported or shown in the draft

    Number

  • Published amount of a previous interim period

    Number

  • Effect of the change in policy that increases the amount

    Number

  • Effect of the change in policy that decreases the amount

    Number

  • Revised annual amount of the estimate

    Number

  • Previous estimate of the same item (before the change)

    Number

2

Supporting documents

Evidence

  • Documents obtained and referenced (published quarterly accounts, management notes, decisions on the change, effect calculations)

    EvidenceRequired

3

Analysis of the year-to-date measurement

Analysis

IAS 34 §28

  • Points examined: same policies and year-to-date measurement

    ChecklistRequired

    • Same accounting policies as in the annual statements, except for changes made since and to be reflected in the next annual statements
    • Measurement on a year-to-date basis from the beginning of the year (IAS 34)
    • Amount of the period obtained by difference between two year-to-date amounts
    • Sum of the periods equal to the year-to-date amount presented

  • Points examined: change in policy and change in estimate

    Checklist

    • Previous interim periods of the year restated where the cumulative effect at the beginning of the year can be determined
    • Prospective application from the earliest practicable date otherwise
    • Change in estimate recognised in the period in which it occurs
4

Calculations

Calculations

IAS 34 §28

  • Year-to-date amount = sum of the quarterly amounts

    Calculation

    0

    Amount of the first quarter ; Amount of the second quarter ; Amount of the third quarter

  • Amount of the period = year-to-date amount − previous year-to-date amount

    Calculation

    2,280,000

    Year-to-date amount at the interim date ; − Year-to-date amount at the previous interim date

  • Closing year-to-date amount = opening year-to-date amount + amounts of the period

    Calculation

    Opening year-to-date amount (previous interim date) ; Amount of the period added to the year-to-date amount ; Year-to-date amount reported or shown in the draft

  • Control difference with the reported or presented year-to-date amount

    Calculation

    Opening year-to-date amount (previous interim date) ; Amount of the period added to the year-to-date amount ; Year-to-date amount reported or shown in the draft

  • Restated amount = published amount ± effect of the change in policy

    Calculation

    0

    Published amount of a previous interim period ; Effect of the change in policy that increases the amount ; − Effect of the change in policy that decreases the amount

  • Effect of the change in estimate in the final interim period (cumulative catch-up recognised in the period) = revised annual amount − previous estimate of the same item

    Calculation

    0

    Revised annual amount of the estimate ; − Previous estimate of the same item (before the change)

5

Judgments: seasonal revenues, uneven costs and feasibility of the restatement

Judgment

IAS 34 §28

  • Seasonal revenues and uneven costs

    JudgmentRequired

    Neither anticipation nor deferral: the treatment would not be appropriate at the annual closing

    Neither anticipation nor deferral: the treatment would not be appropriate at the annual closing / Anticipation or deferral allowed: the same treatment would be appropriate at the annual closing / Not applicable

    Professional judgment: a seasonal revenue or an uneven cost is not smoothed to obtain a steady result; only a treatment appropriate at the annual closing allows anticipating or deferring it.

  • Rationale: nature of the item, date of the expense or revenue, treatment that would be retained at the annual closing

    Text

    DELIVERED_REVENUE_IS_NOT_DEFERRED_AT_YEAR_END_SO_THE_SMOOTHING_IS_NOT_ALLOWED

  • Feasibility of restating a change in policy

    JudgmentRequired

    Not applicable

    Restatement of the previous periods: cumulative effect at the beginning of the year determinable / Prospective application from the earliest practicable date: cumulative effect not determinable / Not applicable

    Professional judgment: feasibility is assessed class by class, on the data actually available; it is not inferred from cost or inconvenience.

  • Rationale: class concerned, data available at the beginning of the year, effort needed to determine the effect

    Text

6

Items to document for the financial information

Disclosure

IAS 34 §28

  • Information to prepare on the changes and seasonality

    Checklist

    • Nature of the change in policy and effect on the restated periods
    • Nature and amount of a significant change in estimate in the final interim period, in a note to the annual statements
    • Explanation of the seasonality or cyclical nature of the activities
7

Conclusion

Conclusion

  • Bridge between year-to-date and period, supported treatment of seasonal revenues and uneven costs, restated amount or prospective application of a change in policy, effect of a change in estimate and information for the annual notes

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Year-to-date and published amounts describedPass
  • Seasonal revenues and uneven costs judged and supportedPass
  • Feasibility of the restatement judged and supportedPass
  • Year-to-date amount = sum of the quarterly amountsNot evaluated
  • Reported year-to-date amount = recomputed year-to-date amount + control differenceNot evaluated
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0