IFRS 18 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
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Required subtotals down to profit for the period and reconciliation of a management-defined performance measure
Required subtotals, exchange differences, hedging and the build-up of profit for the period
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 18 workpaper
- Level
- Intermediate
- Estimated time
- ≈ 90 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Calvaro SA (fictitious entity), an exporter of agricultural equipment, prepares its 20X7 statement of profit or loss under IFRS 18. The ledger contains exchange differences, a derivative hedging a dollar loan and a property tax that are wrongly classified. You correct the classification, then build the subtotals down to profit for the period.
Assignment
Chain of the Calvaro subtotals down to profit for the period
Purpose of the workpaper
Take the income and expenses already classified by category and build the subtotals: operating profit, profit before financing and income taxes, profit before income taxes, profit for the period. For a measure published outside the financial statements, judge whether it is a management-defined performance measure, then reconcile it to the most directly comparable specified subtotal with the income tax effect and the effect on non-controlling interests of each item. The items, the measure and the tax rate of the simplified approach are case data.
Questions of the file covered by this workpaper
- Compute profit before financing and income taxes.
- Compute profit before income taxes.
- Compute profit for the period.
Documents in the file
Open the documents to pick out the relevant information.