IAS 37 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Restructuring provision: Junquera sale project
Professional file: review of the provisions and contingencies of an industrial group
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 37 workpaper
- Level
- Expert
- Estimated time
- ≈ 40 min
- Progress
- 0 / 3 steps done (review excluded)
Context
The Halvoria group (fictitious entities) designs and manufactures agricultural and industrial equipment: irrigation pumps (Merquin), mechanical parts (Lunvalle Mécanique), a foundry (Vellmont), logistics (Rocbrune) and a distribution subsidiary in Spain (Junquera). You are the preparer of the group's provisions and contingencies review file at 31 December 20X5; the group financial controller is the reviewer. The financial statements will be authorised on 3 March 20X6. The ordinary movements of the year (utilisations) have already been recognised; the closing adjustments remain to be prepared.
Assignment
Restructuring provision workpaper (Rocbrune, Junquera).
Purpose of the workpaper
Check that the programme meets the definition of a restructuring and that a constructive obligation exists at the reporting date (detailed formal plan, valid expectation raised in those affected), sort the eligible direct expenditures from the excluded costs, calculate the provision, record the entry and pass the items of the note.
Questions of the file covered by this workpaper
- Is there an obligation to restructure at 31 December 20X5 for Rocbrune and for Junquera?
- Calculate the provision for the closure of Rocbrune.
- Record the closing entries.
Documents in the file
Open the documents to pick out the relevant information.