IFRS 15 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Specific arrangements: Solvane Market marketplace
Group revenue review: principal or agent, warranties, gift cards and disclosures
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 15 workpaper
- Level
- Expert
- Estimated time
- ≈ 50 min
- Progress
- 0 / 5 steps done (review excluded)
Context
The Solvane group (fictitious entities) operates, through its subsidiary Solvane Market, an online marketplace on which third-party merchants offer their products, together with a range of home equipment sold under its own brand, Solvane Home. The subsidiary also sells gift cards and warranty extensions. As head of consolidation, you are reviewing the group's revenue at 31 December 20X5 and preparing the related note.
Assignment
Specific arrangements workpaper: principal or agent and unexercised rights.
Purpose of the workpaper
Account for the specific arrangements of the file: right of return, principal or agent, prepayments, unexercised rights and upfront fees, licences and royalties, repurchase agreements, consignment, bill-and-hold and acceptance clauses, then record the entries.
Questions of the file covered by this workpaper
- Calculate the marketplace commission.
- Record the summary entry for the marketplace sales.
- Calculate the revenue from unexercised rights and the gift card contract liability at year end.
- Record the entries releasing the gift card contract liability.
Documents in the file
Open the documents to pick out the relevant information.