IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Derecognition
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
- ≈ 30 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 Derecognition and gain or loss on disposal.
Purpose 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.
Questions of the file covered by this workpaper
- 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?
Documents in the file
Open the documents to pick out the relevant information.