IFRS 12 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Checklist of the scope, the level of detail and the significant judgments: control, joint control, significant influence and investment entity: Pestel — 18% of the voting rights
Objective, scope and significant judgments of a group: control without a majority, significant influence below 20 % and unconsolidated structured entity
Section 1 of 7
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 12 workpaper
- Level
- Foundation
- Estimated time
- ≈ 60 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Valmer Group SA (fictitious entity) holds 36 % of the voting rights of Noral SA, 18 % of Pestel SA and units of the Quarvel fund. You prepare, for the 20X6 consolidated financial statements, the list of the interests to present and of the judgments to explain.
Assignment
Significant judgments on Noral and Pestel
Purpose of the workpaper
List the interests held in other entities and management's conclusion on control, joint control or significant influence, then decide which judgments to explain and the level of detail. Percentages of voting rights and attendance at meetings are case data: none is presented as a threshold of the standard, and materiality remains a judgment.
Questions of the file covered by this workpaper
- In which category of interests does each investee fall, and what does IFRS 12 aim at?
- Noral: what share of the votes cast does Valmer hold, and which judgment must be explained?
- Pestel: which judgment must be explained about significant influence with less than 20 % of the voting rights?
- Quarvel: is it a structured entity, and does Valmer consolidate it?
- Which disclosures on the composition of the group and on the non-controlling interests of Noral must be provided?
Documents in the file
Open the documents to pick out the relevant information.