IAS 36 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Review of indications of impairment and reversal
Injection press: indications, recoverable amount and revised depreciation
Section 1 of 7
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 36 workpaper
- Level
- Foundation
- Estimated time
- ≈ 30 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Plasturgie Delorme (a fictitious company) manufactures technical plastic parts and closes its accounts on 31 December. It applies the cost model to its property, plant and equipment. Its P450 injection press, acquired on 1 January 20X1, is depreciated on a straight-line basis over 10 years with no residual value. You are preparing the 20X4 year-end.
Assignment
Workpaper Review of indications of impairment and reversal.
Purpose of the workpaper
At each reporting date, list the assets subject to a mandatory annual test, examine the external and internal indications of impairment (and of reversal for assets already impaired), assess their materiality in the light of prior calculations and conclude, asset by asset or unit by unit, on whether the recoverable amount must be estimated.
Questions of the file covered by this workpaper
- Is there an indication of impairment at 31 December 20X4? What must you do?
Documents in the file
Open the documents to pick out the relevant information.