IFRS 18 · Workpapers (Step 4 of 5)
Workpaper assignment
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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
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
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 to financing.
- Compute the transition difference of operating profit.
- Describe the reconciliation of the comparative with IAS 1.
- Compute the operating cash flow from operating profit.
Documents in the file
Open the documents to pick out the relevant information.