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IFRS 10Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 10L1 · Fundamental

Documents

Group profile and case conventions

Memo

Group profile and case conventions

Alvera Group SE (fictitious entity) publishes IFRS consolidated financial statements at 31 December 20X6 and owns all of Marvane Holding SA, an unlisted company. Case conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IFRS 10): control is assessed at 31 December 20X6; Marvane’s investment in Ostrel is carried at 60 % of Ostrel’s equity, with no goodwill or fair value difference; Ostrel’s non-controlling interests equal 40 % of its equity; the entry requested is illustrative.

Assessing control of an investee: power, variable returns, link, principal or agent, reassessment, parent exemption and investment entity status: Marvane Holding — parent exemption

Control of an entity: power, substantive and protective rights, variable returns, link, parent exemption and first consolidation eliminations

5 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 IFRS 10 workpaper
Level
Foundation
Estimated time
≈ 60 min
Progress
0 / 4 steps done (review excluded)

Context

Alvera Group SE (fictitious entity) is preparing its 20X6 consolidated accounts. Its intermediate subsidiary Marvane Holding SA holds 60 % of Ostrel SAS and 25 % of Pentrix SARL. You write the consolidation department’s note: who must consolidate what, and what to do with Marvane’s loan to Ostrel?

Assignment

Assessment of control of Ostrel and Pentrix and Marvane’s exemption

Purpose of the workpaper

Describe the investee, its relevant activities and the rights of each party, list the investor’s variable returns, then support each judgment: power, de facto control or potential rights, principal or agent, reassessment, parent exemption. Percentages, fees and amounts are case data: no threshold is presented as imposed by the standard, and control remains a judgment supported by the facts.

Questions of the file covered by this workpaper

  • Must Marvane Holding present consolidated financial statements? Check each condition of the exemption.
  • Ostrel: identify the relevant activities, the existing rights and whether they are substantive, the variable returns and the link, then conclude on control.
  • Pentrix: do Marvane’s veto rights give it power? Conclude on control.
  • Ostrel: compute Marvane’s investment eliminated against Ostrel’s equity and the amount of non-controlling interests to present in consolidated equity.

Documents in the file

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