IAS 40 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Change in use transfer file: Land U
File of an investment property portfolio: classification, measurement, transfers and disclosures
Section 1 of 8
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
- ≈ 55 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Groupe Valmont (fictitious entities) comprises two companies that each publish IFRS financial statements: Valmont Investissement SA, which applies the fair value model to its investment property, and Valmont Résidences SA, which applies the cost model. For the 31 December 20X5 year-end, you prepare the portfolio file: classification of two properties, acquisition with deferred payment, fair value changes, two situations of change in use, a disposal, the depreciation of a property at cost and the disclosures. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.
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
- Do T and U give rise to a transfer? Justify.
- Compute the transfer difference of T.
- 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.
Documents in the file
Open the documents to pick out the relevant information.