IAS 40 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
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Depreciation file of a property at cost: Building A
Cost model and disposal: depreciation, carrying amount and gain or loss on disposal
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
- Expert
- Estimated time
- ≈ 50 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Foncière Marnay SA (fictitious entity) applies the cost model to its investment property. In 20X5, it sells building A, held for 6 years, and replaces a lift in building B, which it keeps. The depreciation, the carrying amount, the gain or loss on disposal and the treatment of the old part must be determined.
Assignment
Depreciation and carrying amount file
Purpose 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.
Questions of the file covered by this workpaper
- 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.
Documents in the file
Open the documents to pick out the relevant information.