Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

My account — Professional

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

IFRS 7Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 7L4 · Expert

Documents

Company profile and case conventions

Memo

Company profile and case conventions

Dornel SA (fictitious entity) closes its accounts on 31 December 20X6; its functional currency is the euro. Case conventions: amounts in EUR; the flows of the maturity table are those of the contracts, without discounting; case convention (pedagogical assumption, not attributed to IFRS 7): the floating rate of the closing date applies to all the future interest; the reconciliation of the loss allowance contains no recovery and no transfer; the effect on equity equals the effect on profit or loss before tax; the entries are illustrative.

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

File on the financial instrument disclosures: classes, credit risk, liquidity, sensitivity and transfers of assets (IFRS 7)

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

Context

Dornel SA (fictitious entity) closes its accounts on 31 December 20X6. The preparer builds the file of the notes on financial instruments, submitted to a review check: classes of the line item of receivables and investments, credit risk of the trade receivables, maturities and sensitivity of the debt, transfer of receivables with limited recourse. 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

Credit risk of the receivables: grades and loss allowance

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 total gross carrying amount of the receivables.
  • Reconcile the loss allowance from the opening to the closing date.
  • Record the charge to the loss allowance.
  • Record the write-off of the receivables.
  • Is the transfer of receivables a continuing involvement in derecognised assets?
  • Compute the net position of the fair values of the transfer.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template