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.
Impracticability memo
Historical data lost: impracticability, earliest practicable period and no use of hindsight
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 8 workpaper
- Level
- Advanced
- Estimated time
- ≈ 45 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Verrerie d'Aubrecy SA (fictitious entity) finds, through a count at 31 December 20X4, moulds that were scrapped but are still carried as assets, without being able to date the scrapping. You prepare the correction in the 20X5 statements.
Assignment
Impracticability memo: moulds at 31 December 20X4
Purpose of the workpaper
Document the historical data available and the reasonable efforts made, assess against the three situations of the definition whether retrospective application or restatement is impracticable for a given period or for the cumulative effect, determine the earliest practicable period, estimate the amounts needed using only the information available at the time (no hindsight), compute the adjustment at that date and prepare the disclosure of the circumstances.
Questions of the file covered by this workpaper
- Is restating 20X4 impracticable? From which date is the error corrected?
- Estimate the value of the D moulds at 31 December 20X4 with the information of the time only.
- Compute the adjustment at 1 January 20X5.
- What must be disclosed about impracticability?
Documents in the file
Open the documents to pick out the relevant information.