IAS 36 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
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Allocation of goodwill to units
Subsidiary with non-controlling interests: notional goodwill, loss and disclosures
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
- Expert
- Estimated time
- ≈ 30 min
- Progress
- 0 / 3 steps done (review excluded)
Context
The Nordal group (a fictitious group) acquired 80% of Solaris Ibérica, which installs and operates solar power plants, on 1 January 20X2. Non-controlling interests were measured at their proportionate share of identifiable net assets (IFRS 3 option, given); the goodwill recognised, measured under IFRS 3, amounts to 480,000 (given). The 20X2 annual test showed no loss. You are preparing the test at 31 December 20X3 and the note to the consolidated financial statements.
Assignment
Workpaper Allocation of goodwill to units.
Purpose of the workpaper
Allocate acquired goodwill to the units expected to benefit from the synergies, at the lowest level of internal monitoring and not above an operating segment, complete the initial allocation within the time limit, reconcile the allocation table with the goodwill recognised and calculate, on relative values, the share relating to an operation disposed of or reorganised.
Questions of the file covered by this workpaper
- To which unit is goodwill allocated and at which level is it tested?
Documents in the file
Open the documents to pick out the relevant information.