IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Revaluation model: Revaluation at 31 December 20X1
Transferable fishing quotas revalued, then sold
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
- Expert
- Estimated time
- ≈ 40 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Armement Kerlann (a fictitious fishing company) closes its accounts on 31 December. Its fishing rights form a class of intangible assets for which it has elected the revaluation model. It acquired a lot of transferable quotas, traded every week on a regional exchange, then sold it in 20X3. It also holds a non-transferable coastal fishing right. You are reviewing the entries from 20X1 to 20X3 before the 20X3 financial statements are approved.
Assignment
Workpaper Revaluation of an intangible asset.
Purpose 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.
Questions of the file covered by this workpaper
- 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?
Documents in the file
Open the documents to pick out the relevant information.