IAS 8 · Workpapers (Step 4 of 5)
Workpaper assignment
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IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Change in estimate: prospective calculation
Revision of the useful life and residual value of a vehicle fleet
Section 1 of 9
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 8 workpaper
- Level
- Foundation
- Estimated time
- ≈ 35 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Transports Vélarde SA (fictitious entity) revises the useful life and residual value of its truck fleet at 1 January 20X5. You prepare the 20X5 charge and the note.
Assignment
Change in estimate workpaper: truck fleet at 1 January 20X5
Purpose of the workpaper
For a revised estimate (useful life, residual value, loss allowance, provision), confirm that it is a change in accounting estimate, start from the carrying amount at the date of change, compute the new charge or the adjustment of the carrying amount, the effect on the period and on future periods, post the entry of the period and prepare the disclosure of the nature and amount of the change.
Questions of the file covered by this workpaper
- Compute the carrying amount of the fleet at the date of change.
- Compute the revised annual charge.
- Post the 20X5 charge.
- Quantify the effect of the change on 20X5 and on future periods, to be disclosed in the notes.
Documents in the file
Open the documents to pick out the relevant information.