IAS 40 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Classification and mixed-use file: Building A — mixed use
Mixed-use building and services to occupants: classification judgement
Section 1 of 7
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 40 workpaper
- Level
- Advanced
- Estimated time
- ≈ 50 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Foncière Calypso SA (fictitious entity) holds two buildings at the 31 December 20X5 year-end. Building A, let to companies, includes a floor used by the entity's administrative departments. In building B, the entity provides security, reception and maintenance of the common areas for all tenants. The classification of each must be decided.
Assignment
Classification file
Purpose of the workpaper
For each property (one instance per property), describe the facts, state whether the portions can be sold separately, enter the share occupied by the entity and the share of services in the whole arrangement, then justify the classification (whole investment property, separate accounting or owner-occupied property) and whether the services are significant. The standard sets no thresholds: classification is a matter of judgement and is documented by the facts relied on.
Questions of the file covered by this workpaper
- Compute the occupied share of building A and the share of services of building B.
- Classify building A. Justify.
- Classify building B. Justify.
Documents in the file
Open the documents to pick out the relevant information.