IFRS 11 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Classification of a joint arrangement: joint control, separate vehicle, legal form, contractual terms and other facts and circumstances: Depot held by the four parties
Joint arrangement without a separate vehicle: joint control, unanimity, classification as a joint operation and party without joint control
Section 1 of 8
Objective
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 11 workpaper
- Level
- Foundation
- Estimated time
- ≈ 60 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Orlane SA (fictitious entity) signed on 2 January 20X6, with Pevrin SA, Tarmel SA and Rivane SA, a contract to build and operate a storage depot, without creating a company. You prepare the note on the qualification and the accounting of Orlane's 20X6 financial year.
Assignment
Classification of the storage depot arrangement
Purpose of the workpaper
Describe the arrangement, the decisions on the relevant activities and the consent they require, then the vehicle if any, its legal form, the terms of the arrangement and the other facts and circumstances. Percentages, decision thresholds and amounts are case data: none is presented as imposed by the standard, and the classification remains a judgment supported by the enforceable rights and obligations of the parties.
Questions of the file covered by this workpaper
- Do the decisions on the relevant activities require the unanimous consent of the parties sharing control, and what is the combined share of those parties?
- Does Rivane have joint control? How does it account for its interest?
- Is the arrangement structured through a separate vehicle? What is its type?
Documents in the file
Open the documents to pick out the relevant information.