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IAS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

Version of this content

IAS 7 as amended by IFRS 18

Applies to annual periods beginning on or after January 1, 2027. Early application permitted. Only together with early application of IFRS 18, which is permitted and must be disclosed (IFRS 18, para. C1).

Mission · workpaperWorkpaper · IAS 7L3 · Advanced

Documents

Loan agreements and bank statements

Contract

Loan agreements and bank statements

Bank borrowings (EUR): 2,400,000 at 1 January 20X8; new loan drawn in April 800,000; repayments per the bank statements 500,000; unfavourable exchange difference on the dollar loan, recognised in profit or loss, 36,000; 2,736,000 at 31 December 20X8. Accrued interest payable on the loans: 20,000 at the beginning; interest expense of the year 110,000; interest paid 105,000; 25,000 at the end.

Reconciliation of liabilities arising from financing activities: Accrued interest on loans

Borrowings, leases, debt conversion and foreign currency debt: reconciliation of financing liabilities

5 documents8 sections to document
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Guided mode

Section 1 of 8

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
≈ 45 min
Progress
0 / 4 steps done (review excluded)

Context

Orbeval Logistique SA (fictitious entity) operates warehouses and a fleet of trucks. In 20X8 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 enter the reconciliation, accrued interest payable included?
  • 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

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