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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

Sauvanne SA (fictitious entity) closes its accounts on 31 December 20X6. Case conventions: amounts in EUR; case convention (pedagogical assumption, not attributed to IFRS 11): the statements of the joint ventures follow the group’s policies and have the same closing date; no goodwill, fair value adjustment, intragroup profit or other comprehensive income; the loss of Delmas does not bring the investment below zero; the entries are illustrative.

Joint venturer and party without joint control: equity-method carrying amount, significant influence and separate financial statements: Tirel — 15% of Corvane

Joint venture: equity method under IAS 28, share of profit and loss, dividends, party without joint control and IFRS 12 disclosures

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
≈ 60 min
Progress
0 / 5 steps done (review excluded)

Context

Sauvanne SA (fictitious entity) is a joint venturer in Corvane SAS (40 %) and Delmas SA (50 %), two joint ventures whose classification is established. Tirel SA, another shareholder of Corvane, does not have joint control. You prepare the accounting for 20X6.

Assignment

Equity method for Corvane, Delmas and the interest of Tirel

Purpose of the workpaper

List the profit, the dividends and the percentage of the joint venturer, compute the share of profit or loss and the closing carrying amount under the IAS 28 equity method, then judge the significant influence of a party without joint control and the policy for the separate financial statements. Percentages and amounts are case data; the choice of method in the separate statements is a group policy, never presented as imposed by IFRS 11.

Questions of the file covered by this workpaper

  • How does Sauvanne account for its interest in a joint venture?
  • Corvane: compute the share of profit of Sauvanne.
  • Delmas: compute the share of loss of Sauvanne.
  • Corvane: compute the closing carrying amount of the investment.
  • Delmas: compute the closing carrying amount of the investment.
  • Tirel: what is its share of the profit of Corvane if it applies the equity method?
  • Does Tirel have significant influence, and which standard does it apply to its interest?
  • Corvane: record the share of profit.
  • Delmas: record the share of loss.
  • Corvane: record the dividend received.

Documents in the file

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