IAS 37 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Provisions roll-forward
Restoration of a quarry site: best estimate, discounting, unwinding and revision
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 37 workpaper
- Level
- Intermediate
- Estimated time
- ≈ 45 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Gravelune Granulats SA (a fictitious entity) operates hard rock quarries. On 1 January 20X1, it brings into service a mobile crushing plant on the site of the Vaurieux quarry. You are preparing the financial statements for the year ended 31 December 20X1.
Assignment
Movement schedule of provisions workpaper (restoration, 20X1).
Purpose of the workpaper
For a class of provisions, calculate the unwinding of the discount, revise the best estimate at the reporting date (additional provision or reversal), charge the amounts used, determine the reimbursement asset, reconcile the roll-forward with the ledger balance, record the entries and pass the items of the note.
Questions of the file covered by this workpaper
- Calculate the unwinding of the discount for 20X1.
- Revise the provision at 31 December 20X1: is an additional provision or a reversal needed?
- Prepare the movement schedule of the provision and reconcile it with the general ledger.
- Record the unwinding and utilisation entries for 20X1.
Documents in the file
Open the documents to pick out the relevant information.