IFRS 5 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Discontinued operation file: component, single post-tax amount, analysis and comparatives: 20X5 comparative
File of a disposal project: classification, measurement of a group, discontinued operation and presentation
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 5 workpaper
- Level
- Expert
- Estimated time
- ≈ 60 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Groupe Valérian (fictitious entity, water and beverages) prepares its consolidated IFRS financial statements at 31 December 20X6. The board has committed to a plan to dispose of its Water division, which includes goodwill, tangible and intangible assets, an investment property at fair value, receivables and payables. A filling line Y, classified as held for sale last year, is withdrawn from the plan. You prepare the file: classification, measurement, allocation of the loss, ceasing the classification of Y, discontinued operation, the 20X7 reversal and presentation. 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
Discontinued operation file
Purpose of the workpaper
For each period presented (one instance per period: current year and comparative year), describe the component and its distinguishable cash flows, then enter the revenue, expenses and income tax of the period (datum of the file). The file computes the post-tax result of the component and then the single amount: post-tax result of the period, plus the post-tax result of the disposal, less the post-tax measurement loss. The tax on the measurement and on the disposal is a datum of the file. Then justify the boundary of the component and whether it represents a separate major line of business or geographical area: the standard sets no numerical threshold.
Questions of the file covered by this workpaper
- Is the division a component and a discontinued operation? Justify.
- Compute the post-tax result of the division for 20X6 and 20X5.
- Compute the single amount for 20X6 and that of the comparative.
- How should the assets and liabilities of the group, the single amount, its analysis and the comparatives be presented?
Documents in the file
Open the documents to pick out the relevant information.