IAS 36 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Impairment loss on an individual asset
Revalued asset: IAS 16 revaluation, then IAS 36 impairment loss and capped reversal
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
- Advanced
- Estimated time
- ≈ 35 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Cité des Congrès de Loire (a fictitious company) operates an auditorium that it measures under the revaluation model. The last revalued amount dates from 31 December 20X1. Data and methods chosen by the entity: it does not transfer the revaluation surplus to retained earnings as the asset is depreciated and, on a revaluation, it eliminates the accumulated depreciation against the gross carrying amount (a method it chose among those IAS 16 permits). Teaching assumption: tax effects are ignored. You are involved in the 20X2 and 20X3 year-ends.
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
- Determine the recoverable amount at 31 December 20X2.
- Calculate the impairment loss under IAS 36 and its allocation at 31 December 20X2.
- Which impairment entries do you record at 31 December 20X2?
- Calculate the depreciation charge for 20X3.
- Which depreciation entry do you record in 20X3?
Documents in the file
Open the documents to pick out the relevant information.