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IFRS 3Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 3L4 · Expert

Documents

Group profile and file conventions

Memo

Group profile and file conventions

Alvane Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. File conventions: amounts in EUR, rounded to the cent; fair values, scenarios, probabilities, rates and percentages are file data; file convention (pedagogical assumption, not attributed to IFRS 3): for Corvel, the non-controlling interest is measured at the proportionate share of the identifiable net assets; the fair value of the deferred price is the weighted average of the possible payments, discounted at the rate given, a method that is not the only one possible; the entries are illustrative: the combination entry records the assets and liabilities assumed excluding deferred tax, and the supplementary entry records the deferred tax against goodwill.

Step acquisition: remeasurement of the previously held interest, other comprehensive income reclassified, goodwill, pre-existing relationship, remuneration and separate transactions: Corvel — 25% interest

File of a group: identification, purchase price allocation, contingent consideration and step acquisition (IFRS 3)

9 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

Objective

In progress
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 3 workpaper
Level
Expert
Estimated time
≈ 75 min
Progress
0 / 5 steps done (review excluded)

Context

Alvane Group SA (fictitious entity) closes its consolidated accounts on 31 December 20X6. In 20X6, it took control of Corvel Mécanique SA in stages with a deferred price, then acquired Plastex SARL on bargain terms. The preparer builds the consolidation file of these two combinations, submitted to a reviewer, and receives in February 20X7 information on a liability existing at the acquisition date. 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

Previous interest and retention bonus of Corvel

Purpose of the workpaper

List the previously held interest (carrying amount, fair value, cumulative amounts in other comprehensive income), compute the remeasurement gain and the goodwill, then review the items that are not part of the exchange: settlement of a pre-existing relationship, payments linked to employment. Fair values and the measure of the settlement are case data or case conventions, never rules presented as imposed.

Questions of the file covered by this workpaper

  • Compute the remeasurement gain on the 25 % interest held before.
  • Is the retention bonus of the manager part of the exchange?
  • Record the remeasurement of the 25 % interest.

Documents in the file

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