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IFRS 11Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 11L3 · Advanced

Documents

Group profile and case conventions

Memo

Group profile and case conventions

Larzac Énergie SA (fictitious entity) closes its accounts on 31 December 20X6. Case conventions: amounts in EUR; the shares of each item are those of the contract; case convention (pedagogical assumption, not attributed to IFRS 11): the joint liabilities are split on the same shares as the items they finance; the treatment of what the other parties will reimburse to Larzac under the lease is outside the scope; the entries are illustrative.

Accounting of the joint operator: share of assets, liabilities, revenues and expenses, transactions with the joint operation, acquisition of an interest and separate financial statements: Pelvane — 10% participant

Joint operator: share of assets, liabilities, revenues and expenses, sale of output, lease liability and party without joint control

5 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 11 workpaper
Level
Advanced
Estimated time
≈ 75 min
Progress
0 / 5 steps done (review excluded)

Context

Larzac Énergie SA (fictitious entity) operates with Mervane SA, Ostrel SA and Pelvane SA, by contract and without a company, a gas pipeline whose assets, costs and output the parties share. You prepare the accounting for 20X6 of Larzac, a joint operator.

Assignment

Accounting of Larzac and Pelvane in the joint operation

Purpose of the workpaper

List the assets, liabilities, revenues and expenses of the joint operation and the operator's share of each item, then compute each share, total revenue and the gain recognised on a sale to the joint operation. Shares come from the arrangement (agreed rights and obligations), not necessarily from capital: they are case data. The standard that applies to each item remains the one for that item (property, leases, revenue).

Questions of the file covered by this workpaper

  • What is the type of arrangement, who has joint control, and what is the position of Pelvane?
  • Compute the share of Larzac in the asset held jointly.
  • Compute the share of Larzac in the expense incurred jointly.
  • Compute the share of Larzac in the revenue from the sale of output by the joint operation.
  • On what basis should the revenue from the sale of Larzac’s own output be recognised: entitlement to output or transfer to customers?
  • Compute the total revenue of Larzac.
  • Who recognises the liability of the compressor lease, and for what amount?
  • Pelvane: compute its share of the expense incurred jointly.
  • Which standard applies to each asset, liability, revenue and expense of Larzac?
  • Record the share of the asset held jointly.
  • Record the share of the expense incurred jointly.
  • Record the revenue from the sale of own output.
  • Record the share of the revenue from the sale of output by the joint operation.

Documents in the file

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