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IFRS 10Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 10L4 · Expert

Documents

Group profile and file conventions

Memo

Group profile and file conventions

Brelvane Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. File conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IFRS 10): non-controlling interests are measured at their share of identifiable net assets, with no goodwill; the sale of goods to Ardoval is a sale from the parent to its subsidiary, the elimination of unrealised profit being borne by the owners of the parent; the preference shares are classified in equity; goodwill and other comprehensive income are split pro rata to the interest changed; no tax; no transaction costs; the entries are illustrative. Control is a matter of judgement, with no threshold imposed by the standard.

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

Group file: control, consolidation and non-controlling interests, change in ownership without loss of control and loss of control with a retained interest (IFRS 10)

7 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
Expert
Estimated time
≈ 60 min
Progress
0 / 4 steps done (review excluded)

Context

Brelvane Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. The preparer draws up the year’s consolidation file, submitted to a reviewer: control of Tolvane and Fonds Marlis, consolidation of Ardoval and Brivet, the purchase of Cavelle points from third parties and the sale of Sevrane with a loss of control and a retained 30 % interest. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.

Assignment

Assessment of control of Tolvane and Fonds Marlis

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

  • Tolvane: compute the weight of Brelvane’s voting rights in the votes cast (average attendance of 50 %).
  • Tolvane: does Brelvane have power without holding a majority, and does it control Tolvane?
  • Fonds Marlis: compute the annual management fee of Brelvane Gestion.
  • Fonds Marlis: does Brelvane Gestion act as principal or agent, and does Brelvane control the fund?

Documents in the file

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