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IFRS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 7L3 · Advanced

Documents

Company profile and case conventions

Memo

Company profile and case conventions

Corvane SA (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; the conclusions on derecognition and on reclassification come from IFRS 9 and are case data; the net position of the fair values is required when recourse is limited to the transferred assets (IFRS 7, para. 42D); case convention (pedagogical assumption, not attributed to IFRS 7): the reclassification note follows the presentation retained by the case.

Credit risk, offsetting and transfers of assets: exposure by rating grade, reconciliation of the loss allowance, collateral, amounts set off and transferred assets: First transfer of receivables

Offsetting, income and expense, reclassification and transfers of financial assets: disclosures to prepare

6 documents8 sections to document
0 / 5 sections completed
Guided mode

Section 1 of 8

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 7 workpaper
Level
Advanced
Estimated time
≈ 90 min
Progress
0 / 4 steps done (review excluded)

Context

Corvane SA (fictitious entity) has derivatives with Delta Bank, income from financial instruments, a reclassification of loans and two transfers of receivables. For the closing date of 31 December 20X6, you prepare the disclosures on offsetting, income and expense, reclassification and transfers.

Assignment

Offsetting and transfers of Corvane

Purpose of the workpaper

Depending on the topic of the instance, fill in only the relevant blocks: gross carrying amounts by rating grade and movements in the loss allowance; maximum exposure and collateral; gross amounts, amounts set off and related amounts; transferred assets and associated liabilities. Grades, amounts and positions are case data. The reconciliation of the loss allowance is presented here as a table of the movements of the period (convention of the case), the entries being those of the charge and of the write-off.

Questions of the file covered by this workpaper

  • Compute the net amount presented for the derivatives with Delta Bank.
  • Compute the net amount after the related instruments and the cash collateral.
  • First transfer: does the entity have a continuing involvement to disclose for derecognised assets?
  • First transfer: compute the net position of the fair values.
  • Second transfer: is there a continuing involvement, and which datum describes it?

Documents in the file

Open the documents to pick out the relevant information.

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