IAS 36 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Impairment note
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
- ≈ 35 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 Impairment note.
Purpose of the workpaper
Prepare the note: losses and reversals by class (profit or loss and other comprehensive income), information on each material loss or reversal (events, amount, recoverable amount, basis, rates) and, for units carrying goodwill, key assumptions, horizon, rates and sensitivity.
Questions of the file covered by this workpaper
- What is the impact on the consolidated financial statements?
- Which disclosures do you provide in the note?
Documents in the file
Open the documents to pick out the relevant information.