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IFRS 10Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 10L2 · Intermediate

Documents

Group profile and case conventions

Memo

Group profile and case conventions

Lorvane Group SA (fictitious entity) is listed on a regulated market and closes its consolidated accounts on 31 December 20X6. Case conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IFRS 10): the percentages, exercise prices and fees are case data, the standard setting no threshold; the weight of the votes cast at meetings is a reading indicator of the case, not a criterion of the standard; the entry requested is illustrative.

Assessing control of an investee: power, variable returns, link, principal or agent, reassessment, parent exemption and investment entity status: Quesnel — option on voting rights

Control without a majority, potential voting rights, structured entity and fund manager: principal or agent, reassessment of control

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
Intermediate
Estimated time
≈ 60 min
Progress
0 / 4 steps done (review excluded)

Context

Lorvane Group SA (fictitious entity), a listed company, reviews three year-end 20X6 situations: a listed company in which it has held 44 % since 30 June, a company in which it holds 30 % and a call option, and a fund managed by its asset-management subsidiary. You prepare the consolidation department’s judgment note.

Assignment

Assessment of control of Haldrin, Quesnel and Fonds Aster, and Lorvane’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

  • Can Lorvane Group, a listed company, use the parent exemption? Which conditions fail?
  • Haldrin before 30 June 20X6: did Lorvane (34 %) have the practical ability to direct the relevant activities alone?
  • Haldrin after 30 June 20X6: compute the weight of Lorvane’s voting rights in the votes cast (average attendance of 55 %) then assess power without a majority.
  • Which fact requires control of Haldrin to be reassessed, on which date, and from when to consolidate?
  • Quesnel: compute Lorvane’s voting rights if it exercises its option, then assess whether its option and Brannec’s are substantive and conclude on control.
  • Fonds Aster: does Lorvane Gestion act as principal or agent? Weigh the factors (authority, removal rights, remuneration, exposure).
  • Fonds Aster: compute the annual management fee and place it in the analysis of remuneration.

Documents in the file

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