Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IFRS 15Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 15L4 · Expert

Documents

Planning memo of the revenue review

Memo

Planning memo of the revenue review

Planning memo of the revenue review of the Arvelis group at 31 December 20X4. Contracts and items to be reviewed: Laiteries Brévannes packaging line, upgrade of the Brasserie Kervalo and its amendment, sale with deferred payment to Verreries Montclair, ArvelisParts platform, order from Sucrerie d'Ostrevan, Fromageries Valcourt maintenance contract, contract balances and note. Group policies (case data): progress of obligations satisfied over time is measured by the costs incurred relative to the total expected costs; annual maintenance contracts are billed in advance; the group applies the practical expedient that exempts it from disclosing the price allocated to the remaining obligations of contracts with an original expected duration of one year or less.

Contract and performance obligations: Ostrevan order

Professional file: revenue review of an industrial and services group

19 documents7 sections to document
0 / 4 sections completed
Guided mode

Section 1 of 7

Objective

In progress
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
≈ 35 min
Progress
0 / 3 steps done (review excluded)

Context

The Arvelis group (fictitious entities) designs and manufactures custom packaging lines and standard machines (Arvelis Machines division); it also performs plant upgrade works, provides maintenance contracts and sells spare parts, in particular on its online platform ArvelisParts (Arvelis Services division). Its reporting date is 31 December and it applies IFRS. You are in charge of the revenue review file at 31 December 20X4: existence of the contracts, performance obligations, transaction prices, allocation, timing of recognition, modification, contract balances, principal or agent, contract costs, entries, impact, note, responses to the reviewer's notes and conclusion. The entries of the file are presented as not yet recorded and cash collections are not dealt with, unless otherwise stated (teaching assumptions). Impairment of receivables and contract assets under IFRS 9, amortisation of contract cost assets and income tax are outside the scope.

Assignment

Contract and performance obligations workpaper (Brévannes, Kervalo, Ostrevan).

Purpose of the workpaper

Steps 1 and 2: check the scope of IFRS 15 and the criteria for the existence of a contract, then identify the explicit and implicit promises and the distinct performance obligations, warranties included.

Questions of the file covered by this workpaper

  • Analyse the file: which accounting issues arise, which documents are useful and which information is missing?
  • Assess whether a contract with a customer exists for the Brévannes, Kervalo, Ostrevan and Valcourt arrangements.
  • Identify the performance obligations of the Brévannes and Kervalo contracts.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template