IAS 36 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Impairment loss on an individual asset
Injection press: indications, recoverable amount and revised depreciation
Section 1 of 9
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
- ≈ 35 min
- Progress
- 0 / 5 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 Impairment loss on an individual asset.
Purpose of the workpaper
Calculate the carrying amount before the test, compare it with the recoverable amount, allocate the loss between profit or loss and other comprehensive income (revaluation surplus of the same asset only), record the entries and recalculate the depreciation of later periods.
Questions of the file covered by this workpaper
- Calculate the carrying amount of the press and the impairment loss at 31 December 20X4.
- Calculate the depreciation charge for 20X5.
- Which entry do you record at 31 December 20X4?
- Which depreciation entry will you record in 20X5?
Documents in the file
Open the documents to pick out the relevant information.