IFRS 13 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Fair value hierarchy classification file
Level 3 instruments: classification, reconciliation and sensitivity
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 13 workpaper
- Level
- Expert
- Estimated time
- ≈ 40 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Orbis Capital (fictitious entity) is an investment company whose financial instruments are measured at fair value. For the 31 December 20X5 closing, the valuation department sends the instruments, the level 3 movements and sensitivities; you prepare the classification in the hierarchy, the reconciliation and the note.
Assignment
Hierarchy classification file
Purpose of the workpaper
For each measurement (one instance per item), list the inputs, whether each is observable and how much it matters to the measurement, check the criteria of each level, justify the level retained (that of the lowest level input that is significant), then prepare the line of the table by level and the related note.
Questions of the file covered by this workpaper
- In which level should each instrument be classified? Justify, in particular for swap D.
- Reconcile the level 3 balance and compare it with the reported balance.
Documents in the file
Open the documents to pick out the relevant information.