IFRS 18 · Workpapers (Step 4 of 5)
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Classification of income and expenses into the five categories: default category, investing, financing, exchange differences and specified main business activity
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Objective of the workpaper
For each item of income or expense, record its nature, the asset or liability that generates it and the evidence about the activity of the entity. Classify it into one of the five categories: the operating category receives everything not classified in the other four. Then judge the effect of a specified main business activity and the classification of exchange differences, and prepare the reclassification entry where applicable. The facts are case data; each classification remains a supported judgment.
9 sections · 17 blocks · 0 calculations · 1 entry
Work this workpaper as a mission
Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Gain on disposal of a machine
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Interest on bank deposits
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Share of an associate's result
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Interest on a bank loan
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Unwinding of a provision
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Income tax expense
- The five categories of income and expenses: classification of the items of an industrial entity and operating profitOpen the mission · Result of a discontinued operation
- Specified main business activity, aggregation, the "other" label and expenses by nature of a manufacturer that finances its customersOpen the mission · Interest on customer loans
- Specified main business activity, aggregation, the "other" label and expenses by nature of a manufacturer that finances its customersOpen the mission · Interest on cash
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Unwinding of the provision
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Gain on disposal of a machine
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Exchange gain on trade receivables
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Interest on bank deposits
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Share of an associate's result
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparativeOpen the mission · Interest on a bank loan
15 instances from the cases: the calculations and entries below are run by the calculation engine.
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
GAIN_ON_THE_DISPOSAL_OF_AN_OLD_MACHINE_USED_IN_OPERATIONS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Operating category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
ARISING_FROM_OPERATING_ACTIVITIES_AND_NOT_CLASSIFIED_IN_ANOTHER_CATEGORY_SO_THE_DEFAULT_CATEGORY
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_BANK_DEPOSITS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Investing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
CASH_GENERATES_A_RETURN_INDEPENDENTLY_OF_THE_OTHER_RESOURCES
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
SHARE_OF_THE_RESULT_OF_AN_EQUITY_ACCOUNTED_ASSOCIATE
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Investing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
EQUITY_ACCOUNTED_ENTITIES_ARE_IN_THE_INVESTING_CATEGORY
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_A_BANK_LOAN
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Financing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
LIABILITY_ARISING_ONLY_FROM_A_TRANSACTION_THAT_RAISES_FINANCE
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
UNWINDING_OF_THE_DISCOUNT_ON_A_DECOMMISSIONING_PROVISION_RECORDED_IN_OVERHEADS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
35,000
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Account Debit Credit Income of the investing category 35,000 Income of the operating category 35,000
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Financing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
INTEREST_ITEM_UNDER_ANOTHER_STANDARD_THAT_THE_FINANCING_CATEGORY_TAKES_UP
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INCOME_TAX_EXPENSE
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Income taxes category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
INCOME_TAXES_OF_THE_INCOME_TAX_STANDARD
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- The five categories of income and expenses: classification of the items of an industrial entity and operating profit
- Case task documented here
- Classify each of the 9 items of income and expense of the ledger into one of the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
RESULT_OF_A_DISCONTINUED_OPERATION
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Discontinued operations category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
DISCONTINUED_OPERATIONS_OF_THE_NON_CURRENT_ASSETS_HELD_FOR_SALE_STANDARD
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Specified main business activity, aggregation, the "other" label and expenses by nature of a manufacturer that finances its customers
- Case tasks documented here
- Does Gantrel have a specified main business activity?
- What effects on the classification of the interest on customer loans and on cash?
- Record the reclassification of the interest on customer loans.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_LOANS_TO_CUSTOMERS_RECORDED_IN_INVESTING_INCOME
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
ANNUAL_REPORT_AND_SEGMENT_INFORMATION_ON_GANTREL_FINANCE
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
4,600,000
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Account Debit Credit Income of the investing category 4,600,000 Income of the operating category 4,600,000
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Operating category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
SPECIFIED_MAIN_BUSINESS_ACTIVITY_OF_FINANCING_CUSTOMERS_SO_THE_INTEREST_IS_OPERATING
Specified main business activity
JudgmentRequired
Specified main business activity identified: certain income and expenses classified as operating
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
DEDICATED_UNIT_PRESENTED_AS_AN_ACTIVITY_IN_ITS_OWN_RIGHT_AND_A_LARGE_LOAN_PORTFOLIO
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Specified main business activity, aggregation, the "other" label and expenses by nature of a manufacturer that finances its customers
- Case tasks documented here
- Does Gantrel have a specified main business activity?
- What effects on the classification of the interest on customer loans and on cash?
- Record the reclassification of the interest on customer loans.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_CASH_AND_CASH_EQUIVALENTS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Investing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
CASH_IS_IN_THE_INVESTING_CATEGORY
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
UNWINDING_OF_A_DECOMMISSIONING_PROVISION_RECORDED_IN_DISTRIBUTION_AND_ADMINISTRATIVE_EXPENSES
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
220,000
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Account Debit Credit Income of the investing category 220,000 Income of the operating category 220,000
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Financing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
INTEREST_ITEM_UNDER_ANOTHER_STANDARD_THAT_THE_FINANCING_CATEGORY_TAKES_UP
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedPass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
GAIN_ON_THE_DISPOSAL_OF_A_MACHINE_USED_IN_OPERATIONS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Operating category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
ARISING_FROM_OPERATING_ACTIVITIES_SO_THE_DEFAULT_CATEGORY
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
EXCHANGE_GAIN_ON_TRADE_RECEIVABLES
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
TRADE_RECEIVABLES_IN_A_FOREIGN_CURRENCY
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Operating category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
THE_RECEIVABLE_IS_AN_OPERATING_ITEM
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Same category as the item that gave rise to the difference
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
EXCHANGE_DIFFERENCE_FOLLOWS_THE_TRADE_RECEIVABLE_THAT_GAVE_RISE_TO_IT
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_BANK_DEPOSITS
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Investing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
CASH_GENERATES_A_RETURN_INDEPENDENTLY_OF_THE_OTHER_RESOURCES
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
SHARE_OF_THE_RESULT_OF_AN_EQUITY_ACCOUNTED_ASSOCIATE
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Investing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
EQUITY_ACCOUNTED_ENTITIES_ARE_IN_THE_INVESTING_CATEGORY
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
- Case task documented here
- Classify the income and expenses of the comparative into the five categories.
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
INTEREST_ON_A_BANK_LOAN
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Financing category
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
LIABILITY_ARISING_ONLY_FROM_A_TRANSACTION_THAT_RAISES_FINANCE
Specified main business activity
JudgmentRequired
Not applicable
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Not applicable
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References
Checks and financial statement impact
- Item describedPass
- Category judged and supportedPass
- Specified main business activity judgedPass
- Exchange differences judgedPass
- Reclassification entry balancedNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
Facts and data
InputsItem of income or expense to classify: nature, generating asset or liability, amount, initial recording
TextRequired
Evidence about the activities of the entity: main activities, share of revenue, communications
Text
Exchange differences: originating item, currency, any hedge
Text
Amount reclassified between categories
Number
Supporting documents
EvidenceDocuments obtained and referenced (income and expense ledger, financing contracts, statements of investments, public communications)
EvidenceRequired
Analysis of the classification by category
AnalysisIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Points examined: classification by category
ChecklistRequired
- All income and expenses classified into one of the five categories: operating, investing, financing, income taxes, discontinued operations
- Operating category: everything not classified in any of the other four, including volatile or non-recurring items arising from operating activities
- Investing category: assets generating a return individually and largely independently of the other resources, including cash and equity-accounted entities
- Financing category: liabilities arising only from transactions that raise finance, and certain interest items arising under other standards
- Income taxes (IAS 12) and discontinued operations (IFRS 5) in their own categories, with the related exchange differences
- Exchange differences classified in the same category as the item that gave rise to them, unless undue cost or effort
- Specified main business activity assessed on evidence and disclosed
Illustrative entries
EntriesReclassification entry between categories
Entry
Debit Income of the investing category ← Amount reclassified between categories ; Credit Income of the operating category ← Amount reclassified between categories
Judgments: category, specified main business activity and exchange differences
JudgmentIFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18IFRS 18
Category retained for the item
JudgmentRequired
Operating category / Investing category / Financing category / Income taxes category / Discontinued operations category / Not applicable
Professional judgment: the classification follows what the item is and what generates it, not its ledger name or the effect sought on a subtotal.
Rationale: nature of the item, generating asset or liability, default category
Text
Specified main business activity
JudgmentRequired
Specified main business activity identified: certain income and expenses classified as operating / No specified main business activity / Not applicable
Professional judgment: the assessment is a judgement based on the entity's facts and is documented.
Rationale: evidence about the main business activity (investing in assets of a particular type or providing financing to customers)
Text
Classification of exchange differences and hedges
JudgmentRequired
Same category as the item that gave rise to the difference / Exception for undue cost or effort / Not applicable
Professional judgment: an exchange difference follows the category of the item that gave rise to it; the classification of a hedging derivative depends on the case and is documented.
Rationale: originating item and, where applicable, hedged risk
Text
Items to document for the notes
DisclosureIFRS 18
Information to prepare on the classification
Checklist
- Statement of whether or not there is a specified main business activity
- Significant judgments that led to the classification of items by category
Effect on the financial statements
FS impactEffect derived from the entries
Table
Conclusion
ConclusionCategory retained for each item of income and expense with its rationale, effect of a specified main business activity, classification of exchange differences and reclassification where applicable
ConclusionRequired
Normative references
ReferencesNormative references cited in this workpaper
References