IAS 37 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Note: provisions and contingencies: Note — Rocbrune inquiry
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
- ≈ 35 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
Note on provisions and contingencies workpaper (group note, competition inquiry).
Purpose of the workpaper
Starting from the classification grid (“Recognition analysis of provisions and contingencies”) and the roll-forwards (“Provisions roll-forward”), define the classes, check the status of contingencies at the reporting date, assess the extent of the disclosure (impracticability, serious prejudice) and draft the note on provisions, contingent liabilities and contingent assets.
Questions of the file covered by this workpaper
- Prepare the content of the note on provisions and contingencies.
- Determine the extent of the disclosures on contingencies and answer the chief financial officer.
Documents in the file
Open the documents to pick out the relevant information.