IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Separate acquisition: cost of the intangible asset
Professional file: year-end close of the intangible assets of a software publisher
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
- ≈ 35 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Logiciels Boréal (a fictitious company) publishes mapping software. It closes its accounts on 31 December and applies the cost model to all its intangible assets. During 20X2 it acquired the licence of a rendering engine, the Orion licence, developed an online module internally, the Atlas project, and sold an old licence, the Delta licence. It also holds an acquired trademark, Boréal Maps, regarded as having an indefinite useful life, and a support platform licence, the Gamma licence. You are in charge of the 20X2 year-end file: workpapers, proposed entries, review of the draft note, answers to the reviewer's notes and conclusion of the file.
Assignment
Workpaper Separate acquisition: cost of the intangible asset (Orion licence).
Purpose of the workpaper
Check that the item acquired meets the definition and the recognition criteria, classify each expenditure (capitalised or expensed), determine the cost (net purchase price and directly attributable costs up to the date the asset is capable of operating as intended) and record the acquisition and the expenses.
Questions of the file covered by this workpaper
- Calculate the cost of the Orion licence.
- Which acquisition entry do you record?
Documents in the file
Open the documents to pick out the relevant information.