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IAS 8Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

Mission · workpaperWorkpaper · IAS 8L3 · Advanced

Documents

Management memo on the change in cost formula

Memo

Management memo on the change in cost formula

Quincaillerie Talmeuse SA (fictitious entity) sells a range of steel sheets launched on 1 January 20X3 and measured so far at weighted average cost computed over the year. From the 20X5 financial year, management adopts FIFO: the sheets are stored in dated batches and sold in the order they came in, so FIFO follows the physical flow and brings the value of inventory closer to its replacement cost, in a market where prices rise steadily. The 20X5 statements present 20X4 as comparative. No IFRS requires this change.

IAS 8 disclosure checklist

Voluntary change in the inventory cost formula: justification, restatement and disclosures

4 documents6 sections to document
0 / 3 sections completed
Guided mode

Section 1 of 6

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 8 workpaper
Level
Advanced
Estimated time
≈ 30 min
Progress
0 / 2 steps done (review excluded)

Context

Quincaillerie Talmeuse SA (fictitious listed entity) moves from weighted average cost to FIFO for a range of steel sheets from 20X5. You prepare the restatement of the 20X4 comparatives and the note.

Assignment

Disclosure checklist: voluntary change in accounting policy

Purpose of the workpaper

Using the draft notes and the restatement and change-in-estimate schedules, check point by point the disclosures on changes in accounting policies (initial application, voluntary change, IFRSs issued but not yet applied), on changes in estimates and on error corrections; carry over the amounts to be disclosed and record the findings.

Questions of the file covered by this workpaper

  • What information is missing to complete the note?
  • What must be disclosed about this voluntary change?

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template