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IAS 38Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIAS 38 — Intangible AssetsL3

Revaluation model

2 missions10 sections to document40 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Check that an active market exists, determine the revalued amount, allocate the change in value between OCI and profit or loss according to the history of the asset (revaluation surplus, prior decreases in profit or loss) and record it.

10 sections · 23 blocks · 5 calculations · 4 entries

  • IAS 38 §75
  • IAS 38 §80
  • IAS 38 §81
  • IAS 38 §85
  • IAS 38 §86
  • IAS 38 §118
  • IAS 38 §124

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

2 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Transferable fishing quotas revalued, then sold
Case tasks documented here
  • Calculate the revaluation change at 31 December 20X1 and its split between profit or loss and other comprehensive income.
  • Calculate the decrease in value at 31 December 20X2 and its split between profit or loss and other comprehensive income.
  • Which entry do you record at 31 December 20X1?
  • Which entry do you record at 31 December 20X2?
1

Inputs

Inputs

  • Asset of the revalued class (nature, reference market)

    TextRequired

  • Revaluation date

    DateRequired

  • Carrying amount before revaluation

    NumberRequired

    300,000

    Para. 80: on revaluation, accumulated amortisation is either adjusted consistently with the gross amount or eliminated against the gross amount. This workpaper uses elimination: the change is made to the gross amount of an asset that is not amortised or whose accumulated amortisation has been eliminated.

  • Fair value determined by reference to an active market

    NumberRequired

    380,000

  • Revaluation surplus balance for this asset before the transaction

    NumberRequired

    0

  • Decreases of the same asset previously recognised in profit or loss

    NumberRequired

    0

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Active market and application of the model

Analysis

IAS 38 §75IAS 38 §81

  • Checks on the market and the class

    ChecklistRequired

    • Fair value determined by reference to an active market at the revaluation date
    • Revaluations sufficiently regular
    • Assets of the class without an active market kept at cost
4

Allocation of the change in value

Calculations

IAS 38 §75IAS 38 §80IAS 38 §85IAS 38 §86

  • Increase recognised in OCI (revaluation surplus)

    CalculationRequired

    80,000

    Carrying amount before revaluation ; Fair value determined by reference to an active market ; Revaluation surplus balance for this asset before the transaction ; Decreases of the same asset previously recognised in profit or loss

  • Increase in profit or loss (reversal of a prior decrease in profit or loss)

    CalculationRequired

    0

    Carrying amount before revaluation ; Fair value determined by reference to an active market ; Revaluation surplus balance for this asset before the transaction ; Decreases of the same asset previously recognised in profit or loss

  • Decrease recognised in OCI (up to the revaluation surplus)

    CalculationRequired

    0

    Carrying amount before revaluation ; Fair value determined by reference to an active market ; Revaluation surplus balance for this asset before the transaction ; Decreases of the same asset previously recognised in profit or loss

  • Decrease in profit or loss (beyond the revaluation surplus)

    CalculationRequired

    0

    Carrying amount before revaluation ; Fair value determined by reference to an active market ; Revaluation surplus balance for this asset before the transaction ; Decreases of the same asset previously recognised in profit or loss

  • Revaluation surplus balance after the transaction

    CalculationRequired

    80,000

    Carrying amount before revaluation ; Fair value determined by reference to an active market ; Revaluation surplus balance for this asset before the transaction ; Decreases of the same asset previously recognised in profit or loss

5

Journal entries

Entries

  • Increase in value in OCI

    Entry

    AccountDebitCredit
    Intangible asset (gross)80,000
    Revaluation (OCI)80,000

  • Increase in value recognised in profit or loss

    Entry

    Debit Intangible asset (gross) ← Increase in profit or loss (reversal of a prior decrease in profit or loss) ; Credit Reversal of revaluation decrease ← Increase in profit or loss (reversal of a prior decrease in profit or loss)

  • Decrease in value recognised in OCI

    Entry

    Debit Revaluation (OCI) ← Decrease recognised in OCI (up to the revaluation surplus) ; Credit Intangible asset (gross) ← Decrease recognised in OCI (up to the revaluation surplus)

  • Decrease in value in profit or loss

    Entry

    Debit Revaluation loss ← Decrease in profit or loss (beyond the revaluation surplus) ; Credit Intangible asset (gross) ← Decrease in profit or loss (beyond the revaluation surplus)

6

Existence of an active market

Judgment

IAS 38 §75IAS 38 §81

  • Conclusion on the active market for this asset

    JudgmentRequired

    Active market: asset revalued

    Active market: asset revalued / No active market: asset kept at cost

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

7

Conclusion

Conclusion

  • Conclusion on the revalued amount and the OCI / profit or loss allocation

    ConclusionRequired

8

Financial statement impact

FS impact

  • Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

    TableRequired

9

Disclosures

Disclosure

IAS 38 §85IAS 38 §86IAS 38 §118IAS 38 §124

  • Presentation of the effects of the revaluation

    ChecklistRequired

    • Changes in the revaluation surplus presented in OCI
    • Revaluation increases and decreases shown in the reconciliation
    • By class: effective date, revalued carrying amount and carrying amount under the cost model
    • Revaluation surplus relating to intangible assets at the beginning and end of the period
10

Normative references

References

  • Paragraphs cited in this workpaper (verification status shown from the register)

    References

11

Checks and financial statement impact

  • The OCI increase entry is balancedPass
  • The profit or loss increase entry is balancedNot evaluated
  • The OCI decrease entry is balancedNot evaluated
  • The profit or loss decrease entry is balancedNot evaluated
Assets
80,000
Liabilities
0
Profit or loss
0
OCI
80,000
Equity
80,000