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: Restructuring — net effect
IFRS 18 transition file of an industrial group: classification by category, subtotals, performance measures, restated comparative
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
- Expert
- Estimated time
- ≈ 90 min
- Progress
- 0 / 4 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
Subtotals of the comparative and performance measure
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 the operating profit of the restated comparative.
- Compute profit before financing and income taxes.
- Compute profit before income taxes.
- Compute profit for the period.
- Is "adjusted operating profit" a management-defined performance measure? And operating profit?
- 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 litigation settlement.
Documents in the file
Open the documents to pick out the relevant information.