Transition to IFRS 18: restated comparative, reconciliation, note on expenses by nature, "other" label and starting point of the cash flow statement: Note — depreciation

Context

Gantrel SA (fictitious entity) makes agricultural machines and finances the purchase of its machines by its customers through a dedicated unit. It prepares its 20X7 statement of profit or loss under IFRS 18. You assess its specified main business activity, correct the classification of the interest on customer loans, judge the "other" label and prepare the note on expenses by nature, its operating expenses being presented by function.

Assignment

Note on expenses by nature and the "other" label

Purpose of the workpaper

Take the comparative income statement presented under IAS 1 and the classification retained under IFRS 18. Restate the comparative period, measure the difference in each subtotal, prepare the reclassification entry between categories and the reconciliation. Then prepare the note on expenses by nature when operating expenses are classified by function, judge the aggregation and the "other" label, and compute the operating cash flow from operating profit. The amounts are case data; the content of IAS 7, IAS 8 and IAS 33 is not duplicated.

Questions of the file covered by this workpaper

• Can the "other operating expenses" keep the "other" label?
• Compute the total of employee benefits to disclose in the note.
• Compute the total depreciation of property, plant and equipment to disclose in the note.

• MemoEntity profile and case conventionsOpen
• ExtractEvidence on the financing of customersOpen
• ScheduleInterest income in the 20X7 ledgerOpen
• MemoManagement note: manufacturer-lessor leasingOpen
• ScheduleDetail of "other operating expenses"Open
• ScheduleExpenses by nature of 20X7Open
• MemoPresentation of operating expensesOpen
• InvoiceInvoice of a catererOpen