IAS 40Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 40 — Investment PropertyL2 · L3

Depreciation file of a property at cost

3 missions9 sections to document50 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For each property under the cost model (one instance per property or part), enter the cost, the residual value, the useful life and the accumulated depreciation and impairment, compute the annual charge (overall or by component) and the carrying amount, then prepare the depreciation or impairment entry. Enter the fair value to be disclosed in the notes.

9 sections · 20 blocks · 3 calculations · 2 entries

IAS 40 §56
IAS 40 §79

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

3 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Cost model and disposal: depreciation, carrying amount and gain or loss on disposal

Case tasks documented here

Compute the annual depreciation charge of building A.
Compute the carrying amount of building A at disposal and that of the old lift.
Record the depreciation, the replacement of the lift and the disposal.

Inputs

Property or part: nature, date placed in service and components
Text
BATIMENT_A_AU_MODELE_DU_COUT
Cost of the property or part
Number
4,000,000
Estimated residual value
Number
400,000
Useful life (years)
Number
30 years
Accumulated depreciation at the date
Number
720,000
Accumulated impairment at the date
Number
Impairment loss of the period (under IAS 36)
Number
Components: cost, residual value and life
Table
Fair value to be disclosed in the notes
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the cost model

Analysis

IAS 40 §56

Points reviewed: model, components, lives, impairment, held for sale
ChecklistRequired
- IAS 16 cost model applied to all investment property
- Significant components identified
- Residual value and useful lives reviewed
- Indicators of impairment examined
- Properties held for sale excluded from the model

Depreciation and carrying amount calculations

Calculations

IAS 40 §56

Annual straight-line charge: (cost − residual value) / life
Calculation
120,000
Cost of the property or part ; Estimated residual value ; Useful life (years)
Annual charge by component
Calculation
Components: cost, residual value and life
Carrying amount: cost − accumulated depreciation − impairment
Calculation
3,280,000
Cost of the property or part ; − Accumulated depreciation at the date ; − Accumulated impairment at the date

Depreciation and impairment entries

Entries

Depreciation charge of the period
Entry
Account Debit Credit
Depreciation expense 120,000
Accumulated depreciation 120,000
Impairment loss of the period
Entry
Debit Impairment loss ← Impairment loss of the period (under IAS 36) ; Credit Accumulated impairment ← Impairment loss of the period (under IAS 36)

Account	Debit	Credit
Depreciation expense	120,000
Accumulated depreciation		120,000

Conclusion

Charge, carrying amount and disclosures submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 40 §79

Cost model disclosures
ChecklistRequired
- Depreciation methods and useful lives
- Reconciliation of carrying amounts
- Fair value disclosed in the notes

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Depreciation entry balancedPass
Impairment entry balancedNot evaluated

Assets: -120,000
Liabilities: 0
Profit or loss: -120,000
OCI: 0
Equity: -120,000

File and entity

Cost model and disposal: depreciation, carrying amount and gain or loss on disposal

Case tasks documented here

Compute the annual depreciation charge of building A.
Compute the carrying amount of building A at disposal and that of the old lift.
Record the depreciation, the replacement of the lift and the disposal.

Inputs

Property or part: nature, date placed in service and components
Text
ANCIEN_ASCENSEUR_DU_BATIMENT_B
Cost of the property or part
Number
150,000
Estimated residual value
Number
Useful life (years)
Number
Accumulated depreciation at the date
Number
60,000
Accumulated impairment at the date
Number
Impairment loss of the period (under IAS 36)
Number
Components: cost, residual value and life
Table
Fair value to be disclosed in the notes
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the cost model

Analysis

IAS 40 §56

Points reviewed: model, components, lives, impairment, held for sale
ChecklistRequired
- IAS 16 cost model applied to all investment property
- Significant components identified
- Residual value and useful lives reviewed
- Indicators of impairment examined
- Properties held for sale excluded from the model

Depreciation and carrying amount calculations

Calculations

IAS 40 §56

Annual straight-line charge: (cost − residual value) / life
Calculation
Cost of the property or part ; Estimated residual value ; Useful life (years)
Annual charge by component
Calculation
Components: cost, residual value and life
Carrying amount: cost − accumulated depreciation − impairment
Calculation
90,000
Cost of the property or part ; − Accumulated depreciation at the date ; − Accumulated impairment at the date

Depreciation and impairment entries

Entries

Depreciation charge of the period
Entry
Debit Depreciation expense ← Annual straight-line charge: (cost − residual value) / life ; Credit Accumulated depreciation ← Annual straight-line charge: (cost − residual value) / life
Impairment loss of the period
Entry
Debit Impairment loss ← Impairment loss of the period (under IAS 36) ; Credit Accumulated impairment ← Impairment loss of the period (under IAS 36)

Conclusion

Charge, carrying amount and disclosures submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 40 §79

Cost model disclosures
ChecklistRequired
- Depreciation methods and useful lives
- Reconciliation of carrying amounts
- Fair value disclosed in the notes

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Depreciation entry balancedNot evaluated
Impairment entry balancedNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

File of an investment property portfolio: classification, measurement, transfers and disclosures

Case tasks documented here

Compute the annual charge of V.
Compute the carrying amount of V.
Record the acquisition of N and its 20X5 interest, the changes of P and Q, the transfer of T, the disposal of S and the depreciation of V.

Inputs

Property or part: nature, date placed in service and components
Text
IMMEUBLE_V_AU_MODELE_DU_COUT
Cost of the property or part
Number
2,000,000
Estimated residual value
Number
200,000
Useful life (years)
Number
30 years
Accumulated depreciation at the date
Number
240,000
Accumulated impairment at the date
Number
Impairment loss of the period (under IAS 36)
Number
Components: cost, residual value and life
Table
Fair value to be disclosed in the notes
Number
2,100,000

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the cost model

Analysis

IAS 40 §56

Points reviewed: model, components, lives, impairment, held for sale
ChecklistRequired
- IAS 16 cost model applied to all investment property
- Significant components identified
- Residual value and useful lives reviewed
- Indicators of impairment examined
- Properties held for sale excluded from the model

Depreciation and carrying amount calculations

Calculations

IAS 40 §56

Annual straight-line charge: (cost − residual value) / life
Calculation
60,000
Cost of the property or part ; Estimated residual value ; Useful life (years)
Annual charge by component
Calculation
Components: cost, residual value and life
Carrying amount: cost − accumulated depreciation − impairment
Calculation
1,760,000
Cost of the property or part ; − Accumulated depreciation at the date ; − Accumulated impairment at the date

Depreciation and impairment entries

Entries

Depreciation charge of the period
Entry
Account Debit Credit
Depreciation expense 60,000
Accumulated depreciation 60,000
Impairment loss of the period
Entry
Debit Impairment loss ← Impairment loss of the period (under IAS 36) ; Credit Accumulated impairment ← Impairment loss of the period (under IAS 36)

Account	Debit	Credit
Depreciation expense	60,000
Accumulated depreciation		60,000

Conclusion

Charge, carrying amount and disclosures submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 40 §79

Cost model disclosures
ChecklistRequired
- Depreciation methods and useful lives
- Reconciliation of carrying amounts
- Fair value disclosed in the notes

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Depreciation entry balancedPass
Impairment entry balancedNot evaluated

Assets: -60,000
Liabilities: 0
Profit or loss: -60,000
OCI: 0
Equity: -60,000

Inputs

Property or part: nature, date placed in service and components
Text
Cost of the property or part
Number
Estimated residual value
Number
Useful life (years)
Number
Accumulated depreciation at the date
Number
Accumulated impairment at the date
Number
Impairment loss of the period (under IAS 36)
Number
Components: cost, residual value and life
Table
Fair value to be disclosed in the notes
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the cost model

Analysis

IAS 40 §56

Points reviewed: model, components, lives, impairment, held for sale
ChecklistRequired
- IAS 16 cost model applied to all investment property
- Significant components identified
- Residual value and useful lives reviewed
- Indicators of impairment examined
- Properties held for sale excluded from the model

Depreciation and carrying amount calculations

Calculations

IAS 40 §56

Annual straight-line charge: (cost − residual value) / life
Calculation
Cost of the property or part ; Estimated residual value ; Useful life (years)
Annual charge by component
Calculation
Components: cost, residual value and life
Carrying amount: cost − accumulated depreciation − impairment
Calculation
Cost of the property or part ; − Accumulated depreciation at the date ; − Accumulated impairment at the date

Depreciation and impairment entries

Entries

Depreciation charge of the period
Entry
Debit Depreciation expense ← Annual straight-line charge: (cost − residual value) / life ; Credit Accumulated depreciation ← Annual straight-line charge: (cost − residual value) / life
Impairment loss of the period
Entry
Debit Impairment loss ← Impairment loss of the period (under IAS 36) ; Credit Accumulated impairment ← Impairment loss of the period (under IAS 36)

Conclusion

Charge, carrying amount and disclosures submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 40 §79

Cost model disclosures
ChecklistRequired
- Depreciation methods and useful lives
- Reconciliation of carrying amounts
- Fair value disclosed in the notes

Normative references

References

Paragraphs cited in this workpaper and their verification status
References