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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

Physical count of moulds at 31 December 20X4

Schedule

Physical count of moulds at 31 December 20X4

Verrerie d'Aubrecy SA (fictitious entity) carried out a full count of its moulds at 31 December 20X4, when migrating to new software. Moulds on the register but not found, scrapped at an unknown date without derecognition: family A 92,000, family B 61,000, family C 33,000 (carrying amounts at 31 December 20X4). Family D moulds, carrying amount 40,000, held by a subcontractor in difficulty.

Retrospective restatement schedule

Historical data lost: impracticability, earliest practicable period and no use of hindsight

6 documents8 sections to document
0 / 5 sections completed
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 8 workpaper
Level
Advanced
Estimated time
≈ 50 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

Restatement schedule: 20X5 opening balances

Purpose of the workpaper

For a change in accounting policy applied retrospectively or a prior period error, determine the cumulative pre-tax effect at the beginning of the earliest period presented (or of the earliest practicable period), its tax effect at the rate given by the case and the net adjustment to opening retained earnings; isolate the effect specific to the comparative period, restate the line item concerned and the comparative profit, reconcile restated equity, then post the entries and prepare the disclosures.

Questions of the file covered by this workpaper

  • Determine restated retained earnings at 1 January 20X5.
  • Post the correction entry and the entry called for by the liquidator's letter.

Documents in the file

Open the documents to pick out the relevant information.

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View the workpaper template