IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Useful life and amortisation
Broadcasting licences: finite or indefinite useful life
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
- Advanced
- Estimated time
- ≈ 40 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Ondes Atlantique (a fictitious radio group) closes its accounts on 31 December and applies the cost model to its intangible assets. It holds a national broadcasting licence, licence A, regarded since its acquisition as having an indefinite useful life, and has just acquired a digital frequency licence, licence B. You are preparing the 20X1 year-end entries and the note to the financial statements.
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
- Which useful life do you use for licence B, and what charge for 20X1?
- Which entries do you record at 31 December 20X1?
Documents in the file
Open the documents to pick out the relevant information.