Context · Dated fact of the file
From the IAS 1 statement of profit or loss to the IFRS 18 one: the Valdor case
Valdor SA
IFRS 18 · Case studies (Step 3 of 5)
Practical case
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- Case studies
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File · Progressive casePath L1 → L4L1 · Fundamental
From the IAS 1 statement of profit or loss to the IFRS 18 one: the Valdor case
Valdor SA
1 document5 tasks
- Period
- Period 2027
- Standards
- IFRS 18 — Presentation and Disclosure in Financial Statements
- Levels
- 0 / 4 levels validated
- Current level
- L1 · Guided≈ 90 min
Assistance levelFull guidance · strong assistance
- Method: shown
- Checklist: shown
- Hints: shown
- Step-by-step work: shown
Case brief
L1 · Guided · Period 2027
Level 1: classifying the 2027 income and expenses
Progressive case in four levels around Valdor SA, an industrial pump group that closes on 31 December and moves to IFRS 18 for the 2027 period: (1) classify the 2027 income and expenses into categories; (2) build the subtotals and classify exchange differences; (3) present expenses by function, the note by nature, the management performance measure and a credit subsidiary; (4) restate the 2026 comparative, reconcile, link to the cash flow statement and deal with judgement points. The amounts, rates, classification conclusions and conventions are case data or conventions, not general rules.
Valdor is preparing its first statement of profit or loss under IFRS 18. First classify each line of exhibit 1, then calculate the total of the operating category.
Fundamental level: the method, help and references are shown.
Method
- 1Read the brief and the assignment.
- 2Open each document and spot the relevant data.
- 3Carry out the work in the suggested order.
- 4Submit, then read the conclusion and the model answer.
File checklist
- Open each piece (0 / 1 consulted) · to do
- Answer the questions of the level (0 / 5) · to do
- Validate the level, then read the conclusion · to do
Events
The file, period by period
2 / 6 stages reached
Initial event · L1·Period 2027 · Current stage
Level 1: classifying the 2027 income and expenses
Valdor is preparing its first statement of profit or loss under IFRS 18. First classify each line of exhibit 1, then calculate the total of the operating category.
Pieces added
- Exhibit 1: Valdor's income and expenses for 2027 (case data)
New information · L2·Period 2027 · Upcoming: unlocks after the current stage
Upcoming stage
New information · L3·Period 2027 · Upcoming: unlocks after the current stage
Upcoming stage
New period · L4·Periods 2026 (comparative) and 2027 · Upcoming: unlocks after the current stage
Upcoming stage
Conclusion · Upcoming: unlocks after the current stage
Upcoming stage
Documents
Case documents
1 document to work from at this level.
Document 1Supporting document
Exhibit 1: Valdor's income and expenses for 2027 (case data)
Expenses negative. Operating expenses presented by function.
| No. | Line | Amount |
|---|---|---|
| 1 | Revenue | €12,400,000 |
| 2 | Cost of sales | -€8,500,000 |
| 3 | Distribution costs | -€1,150,000 |
| 4 | Administrative expenses (including a restructuring charge of €160,000) | -€1,350,000 |
| 5 | Provision for a commercial dispute (non-recurring) | -€200,000 |
| 6 | Exchange loss on dollar trade receivables | -€45,000 |
| 7 | Interest on cash and cash equivalents | €60,000 |
| 8 | Share of profit of the associate Perline SA (equity method) | €140,000 |
| 9 | Interest on the bank loan | -€180,000 |
| 10 | Unwinding of the discount on a site decommissioning provision | -€30,000 |
| 11 | Exchange loss on the dollar bond (pure financing) | -€35,000 |
| 12 | Income tax expense | -€280,000 |
| 13 | After-tax result of the wood division sold in 2027 (IFRS 5) | €90,000 |
Case convention: Valdor has no specified main business activity; it closes on 31 December and does not apply IFRS 18 early.
Data
Facts of the file
- Entity
- Valdor SA
- Period
- Period 2027
- Current level
- L1 · Guided
- Standards
- IFRS 18 — Presentation and Disclosure in Financial Statements
Pieces carried over from earlier levels
First level: all the data is in the brief and the pieces of this level.
Questions
5 parts to answer, marked when you submit the level.
- Information to identify1
- Analysis and judgement1
- Questions2
- Calculations1
Information to identify
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify each line indicated of exhibit 1 into its category.
ItemOperatingInvestingFinancingIncome taxesDiscontinued operations
Line 1: revenue
Line 5: provision for a non-recurring dispute
Line 7: interest on cash and cash equivalents
Line 8: share of the associate (equity method)
Line 9: interest on the bank loan
Line 10: unwinding of the decommissioning provision
Line 12: income tax expense
Line 13: result of the wood division sold
4 more questions will appear once the current question is complete.
Complete the question to continue.
Workspace
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Conclusion
Answer every part to submit the level and see the conclusion.
Normative references
- IFRS 18
- IFRS 18 §83
- IFRS 18 §118