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IAS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

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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 7L4 · Expert

Documents

Acquisition note for Galmier SAS

Contract

Acquisition note for Galmier SAS

Galmier SAS, 100 % acquired on 30 September 20X8: total consideration 4,200,000, i.e. 3,000,000 paid in cash on the acquisition date and 1,200,000 settled in new shares of the parent. Galmier's provisional balance sheet at that date (EUR): cash and cash equivalents 380,000; property, plant and equipment 2,100,000; inventories 950,000; trade receivables 700,000; borrowings 1,100,000; trade payables 630,000; goodwill 1,800,000 (IFRS 3, not mapped: amounts given by the case).

Group cash flows

Acquisition of a subsidiary, disposal of another and purchase of non-controlling interests: group cash flows

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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
Expert
Estimated time
≈ 50 min
Progress
0 / 4 steps done (review excluded)

Context

The Malvoisine group (fictitious entity) distributes medical equipment. In 20X8 it acquired Galmier SAS, disposed of Malvoisine Ibérica, bought interests in Malvoisine Services and subscribed to a capital increase of its associate Fontanes. The draft consolidated statement needs review.

Assignment

Group cash flows

Purpose of the workpaper

From the acquisition and disposal agreements, the balance sheets of the subsidiaries at the transaction date, the movements in equity-accounted investments and the exchange rates provided, determine the cash flows from acquiring and disposing of subsidiaries net of cash acquired or disposed of, classify changes in ownership without loss of control, determine the cash flows with associates, measure the exchange effect on the cash of a foreign subsidiary and prepare the disclosures on obtaining and losing control.

Questions of the file covered by this workpaper

  • Analyse the group transactions of the period.
  • Compute the cash flow from acquiring Galmier.
  • Compute the cash flow from disposing of Malvoisine Ibérica.
  • Compute the dividends received from Fontanes.
  • Classify the transactions and identify the pitfalls of the consolidated statement.
  • Prepare the note on obtaining and losing control.

Documents in the file

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