IFRS 13 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Portfolio exception file
Day one difference and portfolio exception of a bank
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 13 workpaper
- Level
- Expert
- Estimated time
- ≈ 55 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Banque Altavia (fictitious entity) acquired three instruments in January 20X5 and runs two derivatives desks. For the 31 December 20X5 closing, the finance department asks you to deal with the difference between price and fair value for each instrument and to check whether the desks may measure their positions on a net basis.
Assignment
Portfolio exception file
Purpose of the workpaper
For each portfolio (one instance per portfolio), describe the net-basis risk management, check the conditions for the exception, compute the net position, its fair value (price of the net position adjusted for the spread) and the allocation of the adjustment to the items, then justify eligibility and prepare the disclosure.
Questions of the file covered by this workpaper
- Are desks A and B eligible for the portfolio exception? Justify.
- Compute desk A's net position.
- Compute the fair value of the net position.
Documents in the file
Open the documents to pick out the relevant information.