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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.

Change in ownership without loss of control: equity transaction, adjustment of non-controlling interests and silences of the standard

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 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

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 / 5 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

Change in ownership of Cavelle without loss of control

Purpose of the workpaper

Describe the transaction with the third parties, list the carrying-amount base, the proportion acquired or sold and the fair value of the consideration, then compute the adjustment of the third parties and the difference attributed to the owners of the parent: no profit or loss and no additional goodwill. Where the standard is silent (goodwill, accumulated other comprehensive income, transaction costs), document the group’s policy without presenting it as imposed by the standard.

Questions of the file covered by this workpaper

  • Cavelle: compute the carrying amount of the non-controlling interests acquired.
  • Cavelle: compute the difference to charge to the equity of the owners of the parent.
  • Does the standard say how to split goodwill, accumulated other comprehensive income and transaction costs on the purchase of Cavelle? Which policy does the group adopt?
  • Record the purchase of the Cavelle points from third parties.

Documents in the file

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