IAS 7 · Workpapers (Step 4 of 5)
Workpaper assignment
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Version of this content
IAS 7 Statement of Cash Flows — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Reconciliation of liabilities arising from financing activities: Bank borrowings
Borrowings, leases, debt conversion and foreign currency debt: reconciliation of financing liabilities
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 7 workpaper
- Level
- Advanced
- Estimated time
- ≈ 45 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Orbeval Logistique SA (fictitious entity) operates warehouses and a fleet of trucks. In 20X5 it drew a new loan, repaid part of its borrowings including a dollar loan, leased new warehouses and saw its convertible bonds converted. You prepare the note on liabilities arising from financing activities.
Assignment
Reconciliation of liabilities arising from financing activities
Purpose of the workpaper
For each class of liabilities (one instance per class: bank borrowings, lease liabilities, bonds…), check that it is a liability arising from financing activities, take the opening and closing balances from the statement of financial position, split the changes between financing cash flows, changes from obtaining or losing control, exchange effects, fair value changes and other non-cash changes, check that the reconciliation agrees with the reported balance and prepare the disclosure with its links to the statement of cash flows and the primary statements.
Questions of the file covered by this workpaper
- Which liabilities are within the reconciliation?
- Split the lease payments.
- Check the repayments against the balances.
- Prepare the reconciliation by class and in total.
- Draft the note and the disclosures on non-cash transactions.
Documents in the file
Open the documents to pick out the relevant information.