IAS 38 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Useful life and amortisation: Gamma licence
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
- ≈ 40 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 Useful life and amortisation (Orion, Gamma and Delta licences, Atlas module).
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 and amortisation method do you retain for the Orion licence? Answer management's proposal.
- Calculate the 20X2 charge for the Orion licence.
- Calculate the 20X2 charges for the Atlas module and the Delta licence.
- Calculate the 20X2 charge for the Gamma licence.
- Which amortisation entries do you record for 20X2?
Documents in the file
Open the documents to pick out the relevant information.