IFRS 18 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Classification of income and expenses into the five categories: default category, investing, financing, exchange differences and specified main business activity: Gain on disposal of a machine
IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
Section 1 of 7
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
- Expert
- Estimated time
- ≈ 75 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Hexalor SA (fictitious entity), an industrial group, applies IFRS 18 for the first time to its period beginning on 1 January 2027; the 2026 comparative period is restated. The preparer builds the transition file submitted to a review check: classification of the income and expenses of the comparative, reclassification between categories, required subtotals, reconciliation of the measure "adjusted operating profit", transition difference and operating cash flow from operating profit. Teaching simulation: the review trail of the file (preparation, reviewer notes and final sign-off) is simulated for demonstration purposes; it is neither a real review nor a validation of the content.
Assignment
Classification of the income and expenses of the comparative
Purpose 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.
Questions of the file covered by this workpaper
- Classify the income and expenses of the comparative into the five categories.
Documents in the file
Open the documents to pick out the relevant information.