IFRS 13 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Portfolio exception file
Fair value measurement file of an industrial and financial group
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
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
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
- Is the derivatives portfolio eligible for the portfolio exception? Justify.
- Compute the net position.
- Compute the fair value of the net position.
Documents in the file
Open the documents to pick out the relevant information.