IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Useful life and amortisation
Acquisition of a management software licence
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 38 workpaper
- Level
- Foundation
- Estimated time
- ≈ 40 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Transports Delmar (a fictitious company) runs delivery rounds and closes its accounts on 31 December. It applies the cost model to its intangible assets. In 20X1, it acquires from a vendor a perpetual licence for route optimisation software. You are asked to account for the acquisition from the documents below.
Assignment
Workpaper Amortisation schedule.
Purpose of the workpaper
Assess the useful life (finite or indefinite, rights and renewals), choose the method reflecting the pattern of consumption of the benefits, prepare the amortisation schedule from the available-for-use date, apply any revision prospectively and record the charge for the period.
Questions of the file covered by this workpaper
- Calculate the annual amortisation charge.
- From which date does amortisation start? Calculate the charge for 20X1.
- Which journal entries do you record in 20X1?
Documents in the file
Open the documents to pick out the relevant information.