IAS 40 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Change in use transfer file: Situation 4 — property occupied by the entity
Change in use: transfers from an owner-occupied property and from inventory
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 40 workpaper
- Level
- Advanced
- Estimated time
- ≈ 55 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Domaines Taillefer SA (fictitious entity) applies the fair value model to its investment property. In 20X5, five properties undergo a change, or an announced change, in use. The entity must decide which give rise to a transfer and measure the difference.
Assignment
Transfer file
Purpose of the workpaper
For each property concerned (one instance per property), describe the change in use and the evidence (dates, works, contracts), judge whether there is evidence of a change in use or only a management intention, enter the cost and the accumulated amounts, the fair value at the date of change, compute the previous carrying amount and the transfer difference, then prepare the entry according to the direction of the transfer. The allocation of the difference (other comprehensive income or profit or loss) is entered according to the direction of the transfer and submitted to the reviewer.
Questions of the file covered by this workpaper
- For each situation, is a change in use evidenced? Justify.
- Compute the transfer differences of situations 1, 2 and 3.
- Record the four transfers.
Documents in the file
Open the documents to pick out the relevant information.