IFRS 18 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
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Required subtotals down to profit for the period and reconciliation of a management-defined performance measure: Adjusted operating profit
Management-defined performance measures: definition, excluded subtotals, reconciliation, tax and non-controlling interest effects
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
- Advanced
- Estimated time
- ≈ 90 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Montrel SA (fictitious entity) publishes several measures in its 20X7 earnings release. It prepares its statements under IFRS 18. You identify the management-defined performance measures, reconcile the one that is such a measure to the most directly comparable specified subtotal, compute the income tax effect and the effect on non-controlling interests of each item and correct on the way a classification found during the reconciliation.
Assignment
Identification, measure and reconciliation of the items
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
- Which of the 5 measures of the release are management-defined performance measures?
- Compute the measure "adjusted operating profit".
- Compute the net effect of tax and non-controlling interests of the restructuring.
- Compute the net effect of tax and non-controlling interests of the amortisation of acquired intangibles.
Documents in the file
Open the documents to pick out the relevant information.