IFRS 7 · Case studies (Step 3 of 5)
Practical case
Marcelis SA, a fictitious trading and distribution group with a finance subsidiary, IFRS consolidated financial statements, year-end 31 December 2026.
L1 · Guided · Year 2026, framework of the note
Progressive case in four levels: you build Marcelis's note on its financial instruments and their risks. (1) Framework: classes, categories, plan and concentrations; (2) credit risk: practices, grades, loss allowance reconciliation, collateral; (3) liquidity, market, offsetting, income, fair value and reclassification; (4) asset transfers, hedging, borders with IAS 32 and IAS 7, applicable amendments and IFRS 18. Amounts, percentages, grades and choices in the case are case data; rounding follows a case convention, not a rule of the standard.
Marcelis SA, a trading and distribution group, is preparing its financial instruments note for 2026. You first set the framework: classes, categories, the plan of the note and a first quantification of concentrations. The standards involved are announced.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Marcelis SA, a fictitious trading and distribution group with a finance subsidiary, IFRS consolidated financial statements, year-end 31 December 2026.
Initial event · L1·Year 2026, framework of the note · Current stage
Marcelis SA, a trading and distribution group, is preparing its financial instruments note for 2026. You first set the framework: classes, categories, the plan of the note and a first quantification of concentrations. The standards involved are announced.
Pieces added
New period · L2·Year 2026, credit risk · Upcoming: unlocks after the current stage
New period · L3·Year 2026, liquidity, market and position · Upcoming: unlocks after the current stage
New period · L4·Year 2026, transfers, hedging and developments · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Document
*Teaching assumption*: the facts are fictitious. *Case convention*: the measurement category of each line is given.
| Line item | Amount | Category |
|---|---|---|
| Trade receivables | €4,800,000 | Amortised cost |
| Loans to suppliers | €700,000 | Amortised cost |
| Cash | €2,150,000 | Amortised cost |
| Quoted bonds | €1,900,000 | Fair value through OCI |
| Shares held for trading | €420,000 | Fair value through profit or loss |
| Derivative assets | €310,000 | Fair value through profit or loss |
| Bank borrowings | €6,500,000 | Amortised cost |
| Bond issued | €3,000,000 | Amortised cost |
| Trade payables | €3,400,000 | Amortised cost |
| Derivative liabilities | €180,000 | Fair value through profit or loss |
The two borrowings look alike to the reader: the entity groups them in a "Borrowings" class.
First level: all the data is in the brief and the pieces of this level.
5 parts to answer, marked when you submit the level.
Start from the data in the pieces, set the formula, check the unit and the order of magnitude.
Marcelis SA, a trading and distribution group, is preparing its financial instruments note for 2026. You first set the framework: classes, categories, the plan of the note and a first quantification of concentrations. The standards involved are announced.
Document 1Document
*Teaching assumption*: the facts are fictitious. *Case convention*: the measurement category of each line is given.
| Line item | Amount | Category |
|---|---|---|
| Trade receivables | €4,800,000 | Amortised cost |
| Loans to suppliers | €700,000 | Amortised cost |
| Cash | €2,150,000 | Amortised cost |
| Quoted bonds | €1,900,000 | Fair value through OCI |
| Shares held for trading | €420,000 | Fair value through profit or loss |
| Derivative assets | €310,000 | Fair value through profit or loss |
| Bank borrowings | €6,500,000 | Amortised cost |
| Bond issued | €3,000,000 | Amortised cost |
| Trade payables | €3,400,000 | Amortised cost |
| Derivative liabilities | €180,000 | Fair value through profit or loss |
The two borrowings look alike to the reader: the entity groups them in a "Borrowings" class.
Part 1 · Calculation
Calculate the value of the "Borrowings" class (bank borrowings and bond issued).
4 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references