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

Context

Lorvane SA (fictitious entity), an industrial group, applies IFRS 18 for the first time to its period beginning on 1 January 2027 and restates the 2026 comparative period, presented under IAS 1. You prepare the transition note: date and European adoption, restated comparative, difference in operating profit, reconciliation, starting point of the cash flow statement, classification of interest and dividends paid, per-share amounts and links with IAS 8.

Assignment

Restated comparative, transition difference and operating cash flow

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

• Record the reclassification of the unwinding in the restated comparative.
• Compute the transition difference of operating profit.
• Compute the operating cash flow from operating profit.

• MemoGroup profile and case conventionsOpen
• MemoTransition note: date, adoption and applicationOpen
• Schedule2026 statement of profit or loss under IAS 1Open
• ScheduleRestated 2026 comparative under IFRS 18Open
• Schedule2026 cash flow statement dataOpen
• MemoManagement request: supplementary per-share amountOpen
• MemoIAS 1 requirements transferred to IAS 8Open
• InvoiceInvoice for office renovationOpen