IFRS 13 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
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Day one difference analysis
Fair value measurement file of an industrial and financial group
Section 1 of 9
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
- ≈ 50 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Groupe Halvern (fictitious entity) combines an industrial division and a financial division. For the 31 December 20X5 closing, you prepare the fair value measurement file: copper lot, industrial site, warranty, level 3 instruments, an instrument acquired during the year and a derivatives portfolio. A reviewer will check the file and may ask questions. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.
Assignment
Day one difference analysis
Purpose of the workpaper
For each transaction (one instance per instrument), describe the facts and the standard that applies to the item, compare the transaction price with the fair value given by the technique, compute the initial difference and, where relevant, the calibration adjustment, justify the treatment (no difference, profit or loss, deferral) under the applicable standard, then prepare the entry and its effect on the financial statements. IFRS 13 does not itself say where to recognise the difference: the treatment refers to the standard that applies to the item.
Questions of the file covered by this workpaper
- Compute the initial difference of the instrument acquired.
- Which treatment should be used for the initial difference? Justify.
- Record the acquisition of the instrument.
Documents in the file
Open the documents to pick out the relevant information.