IAS 38Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 38 — Intangible AssetsL2 · L3

Derecognition

2 missions8 sections to document30 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

Identify the derecognition event (disposal or no future benefits expected), determine the carrying amount derecognised and the result (net disposal proceeds less carrying amount), then record the derecognition, presenting any gain outside revenue.

8 sections · 19 blocks · 4 calculations · 1 entry

IAS 38 §112
IAS 38 §113
IAS 38 §114
IAS 38 §116
IAS 38 §87

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 net proceeds and the gain or loss on the sale of 31 March 20X3.
Which entry do you record on 31 March 20X3?

Inputs

Asset derecognised (nature, buyer, circumstances)
TextRequired
Date of derecognition
DateRequired
20X3-03-31
Date on which the recipient obtains control of the asset, determined under the IFRS 15 requirements for satisfying a performance obligation (para. 114).
Gross amount (cost or revalued amount)
NumberRequired
300,000
Accumulated amortisation at the date of derecognition
Number
Accumulated impairment
Number
Disposal proceeds
Number
345,000
Consideration determined under the IFRS 15 requirements on the transaction price; a later change in its estimate follows the IFRS 15 requirements on changes in the transaction price (para. 116).
Costs of disposal
Number
5,000
Remaining revaluation surplus transferred to retained earnings on derecognition (optional, revaluation model)
Number
Only for an asset measured under the revaluation model: the remaining revaluation surplus may be transferred directly to retained earnings on derecognition. This transfer stays within equity, goes neither through profit or loss nor through other comprehensive income, and does not change the gain or loss on derecognition (para. 87).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Derecognition event

Analysis

IAS 38 §112

Event retained
ChoiceRequired
Disposal (sale)
Disposal (sale) / No future economic benefits expected from use or disposal
Facts relied on (date, transfer, no expected benefits)
TextRequired

Gain or loss on derecognition

Calculations

IAS 38 §113

Carrying amount at derecognition
CalculationRequired
300,000
Gross amount (cost or revalued amount) ; − Accumulated amortisation at the date of derecognition ; − Accumulated impairment
Net disposal proceeds
CalculationRequired
340,000
Disposal proceeds ; − Costs of disposal
Gain on derecognition (not classified as revenue)
CalculationRequired
40,000
Net disposal proceeds ; − Carrying amount at derecognition
Loss on derecognition
CalculationRequired
0
Net disposal proceeds ; − Carrying amount at derecognition

Journal entries

Entries

Derecognition of the asset (gain or loss)
EntryRequired
Account Debit Credit
Net proceeds received 340,000
Gross amount derecognised 300,000
Gain on derecognition 40,000
Entry family according to the result: gain or loss on derecognition (zero lines omitted).

Account	Debit	Credit
Net proceeds received	340,000
Gross amount derecognised		300,000
Gain on derecognition		40,000

Conclusion

Conclusion on the derecognition date and the result
ConclusionRequired

Financial statement impact

FS impact

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

Normative references

References

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

Checks and financial statement impact

The carrying amount derecognised is determinedPass
The derecognition entry is balancedPass

Assets: 40,000
Liabilities: 0
Profit or loss: 40,000
OCI: 0
Equity: 40,000

File and entity

Professional file: year-end close of the intangible assets of a software publisher

Case tasks documented here

Calculate the gain or loss on the sale of the Delta licence.
Which impairment and sale entries do you record?

Inputs

Asset derecognised (nature, buyer, circumstances)
TextRequired
Date of derecognition
DateRequired
20X2-06-30
Date on which the recipient obtains control of the asset, determined under the IFRS 15 requirements for satisfying a performance obligation (para. 114).
Gross amount (cost or revalued amount)
NumberRequired
120,000
Accumulated amortisation at the date of derecognition
Number
50,000
Accumulated impairment
Number
Disposal proceeds
Number
85,000
Consideration determined under the IFRS 15 requirements on the transaction price; a later change in its estimate follows the IFRS 15 requirements on changes in the transaction price (para. 116).
Costs of disposal
Number
3,000
Remaining revaluation surplus transferred to retained earnings on derecognition (optional, revaluation model)
Number
Only for an asset measured under the revaluation model: the remaining revaluation surplus may be transferred directly to retained earnings on derecognition. This transfer stays within equity, goes neither through profit or loss nor through other comprehensive income, and does not change the gain or loss on derecognition (para. 87).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Derecognition event

Analysis

IAS 38 §112

Event retained
ChoiceRequired
Disposal (sale)
Disposal (sale) / No future economic benefits expected from use or disposal
Facts relied on (date, transfer, no expected benefits)
TextRequired

Gain or loss on derecognition

Calculations

IAS 38 §113

Carrying amount at derecognition
CalculationRequired
70,000
Gross amount (cost or revalued amount) ; − Accumulated amortisation at the date of derecognition ; − Accumulated impairment
Net disposal proceeds
CalculationRequired
82,000
Disposal proceeds ; − Costs of disposal
Gain on derecognition (not classified as revenue)
CalculationRequired
12,000
Net disposal proceeds ; − Carrying amount at derecognition
Loss on derecognition
CalculationRequired
0
Net disposal proceeds ; − Carrying amount at derecognition

Journal entries

Entries

Derecognition of the asset (gain or loss)
EntryRequired
Account Debit Credit
Net proceeds received 82,000
Accumulated amortisation 50,000
Gross amount derecognised 120,000
Gain on derecognition 12,000
Entry family according to the result: gain or loss on derecognition (zero lines omitted).

Account	Debit	Credit
Net proceeds received	82,000
Accumulated amortisation	50,000
Gross amount derecognised		120,000
Gain on derecognition		12,000

Conclusion

Conclusion on the derecognition date and the result
ConclusionRequired

Financial statement impact

FS impact

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

Normative references

References

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

Checks and financial statement impact

The carrying amount derecognised is determinedPass
The derecognition entry is balancedPass

Assets: 12,000
Liabilities: 0
Profit or loss: 12,000
OCI: 0
Equity: 12,000

Inputs

Asset derecognised (nature, buyer, circumstances)
TextRequired
Date of derecognition
DateRequired
Date on which the recipient obtains control of the asset, determined under the IFRS 15 requirements for satisfying a performance obligation (para. 114).
Gross amount (cost or revalued amount)
NumberRequired
Accumulated amortisation at the date of derecognition
Number
Accumulated impairment
Number
Disposal proceeds
Number
Consideration determined under the IFRS 15 requirements on the transaction price; a later change in its estimate follows the IFRS 15 requirements on changes in the transaction price (para. 116).
Costs of disposal
Number
Remaining revaluation surplus transferred to retained earnings on derecognition (optional, revaluation model)
Number
Only for an asset measured under the revaluation model: the remaining revaluation surplus may be transferred directly to retained earnings on derecognition. This transfer stays within equity, goes neither through profit or loss nor through other comprehensive income, and does not change the gain or loss on derecognition (para. 87).

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Derecognition event

Analysis

IAS 38 §112

Event retained
ChoiceRequired
Disposal (sale) / No future economic benefits expected from use or disposal
Facts relied on (date, transfer, no expected benefits)
TextRequired

Gain or loss on derecognition

Calculations

IAS 38 §113

Carrying amount at derecognition
CalculationRequired
Gross amount (cost or revalued amount) ; − Accumulated amortisation at the date of derecognition ; − Accumulated impairment
Net disposal proceeds
CalculationRequired
Disposal proceeds ; − Costs of disposal
Gain on derecognition (not classified as revenue)
CalculationRequired
Net disposal proceeds ; − Carrying amount at derecognition
Loss on derecognition
CalculationRequired
Net disposal proceeds ; − Carrying amount at derecognition

Journal entries

Entries

Derecognition of the asset (gain or loss)
EntryRequired
Debit Net proceeds received ← Net disposal proceeds ; Debit Accumulated amortisation ← Accumulated amortisation at the date of derecognition ; Debit Accumulated impairment ← Accumulated impairment ; Debit Loss on derecognition ← Loss on derecognition ; Credit Gross amount derecognised ← Gross amount (cost or revalued amount) ; Credit Gain on derecognition ← Gain on derecognition (not classified as revenue)
Entry family according to the result: gain or loss on derecognition (zero lines omitted).

Conclusion

Conclusion on the derecognition date and the result
ConclusionRequired

Financial statement impact

FS impact

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

Normative references

References

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