Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IAS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

Mission · workpaperWorkpaper · IAS 7L3 · Advanced

Documents

Bank confirmations and statements at 31 December 20X5

Schedule

Bank confirmations and statements at 31 December 20X5

At 31 December 20X5 (EUR): cash on hand 6,000; demand deposits 842,000 (including the Valtaria subsidiary); term deposit placed on 15 November 20X5 maturing on 15 February 20X6, without any significant early withdrawal penalty, 300,000; term deposit placed on 1 December 20X4 maturing on 31 January 20X6, 250,000; listed shares held by treasury 180,000; money market fund with daily liquidity and a very stable value according to its prospectus 120,000; overdraft repayable on demand 95,000, the account having been alternately in credit and overdrawn every month of the year; six-month short-term bank loan drawn on 20 December 20X5 200,000.

Analysis of cash and cash equivalents: Term deposit of 1 December 20X4

Investments, overdraft and cash trapped abroad: composition and reconciliation of cash

4 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

Objective

In progress
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 7 workpaper
Level
Advanced
Estimated time
≈ 40 min
Progress
0 / 3 steps done (review excluded)

Context

The Solvanne group (fictitious entity) is preparing the cash note of its 20X5 financial statements. Its subsidiary in Valtaria (fictitious country) holds local currency cash subject to exchange controls. You analyse the balances at 31 December 20X5.

Assignment

Analysis of cash and cash equivalents

Purpose of the workpaper

From the bank statements and confirmations, the features of the investments and the overdraft agreements, qualify each balance (cash, cash equivalent, excluded investment, overdraft that is part of cash management or financing), determine closing cash and cash equivalents, compute the effect of exchange rate changes, reconcile opening and closing cash with the net change in the statement, identify balances that are not available for use and prepare the note on the components.

Questions of the file covered by this workpaper

  • Qualify each balance: cash, cash equivalent, excluded investment or financing.
  • Is the overdraft part of cash management? Are the subsidiary's balances available?
  • Determine the qualifying and excluded investments and closing cash.
  • Compute the effect of exchange rate changes on cash.
  • Reconcile opening and closing cash.
  • Prepare the note: components, reconciliation with the statement of financial position, policy, unavailable balances.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template