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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 8L4 · Expert

Documents

National regulation on water sobriety certificates

Contract

National regulation on water sobriety certificates

In the (fictitious) country where Groupe Halvenor (beverages) operates, each industrial site receives transferable water sobriety certificates (WSC) free of charge at the start of the year. By 30 April of the following year it must surrender one certificate per thousand cubic metres drawn; otherwise it pays a penalty. WSC are traded on a public platform. In 20X5, the subsidiary Halvenor Sources received 10,000 certificates, with a market value of 30 at grant; its 20X5 water use requires it to surrender 11,200 certificates; it holds 10,000 certificates at 31 December 20X5.

Accounting policy memo: Halvenor Sud certificate purchases

Transaction with no applicable standard: developing and documenting an accounting policy

5 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

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
Expert
Estimated time
≈ 40 min
Progress
0 / 3 steps done (review excluded)

Context

Groupe Halvenor (fictitious entity) receives water sobriety certificates created by a fictitious national regulation. You prepare the group's accounting policy memo and the 20X5 closing entries; little guidance is given.

Assignment

Accounting policy memo: water sobriety certificates

Purpose of the workpaper

Describe the transaction, look for the IFRS that specifically applies to it and the effect of materiality; where no IFRS applies, document in order the sources consulted (IFRSs dealing with similar issues, Conceptual Framework, other consistent pronouncements), check consistency by category, then write the policy adopted and its rationale.

Questions of the file covered by this workpaper

  • Does an IFRS specifically apply to the certificates? Which approach must be followed?
  • Assess approach (A) adopted by management against the hierarchy of sources and the required qualities.
  • What should be done with the practices of Halvenor Nord and Halvenor Sud on consolidation?
  • Post the 20X5 closing entries under the group's policy.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template