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 9Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 9L4 · Expert

Documents

Group profile and file conventions

Memo

Group profile and file conventions

Vestrel Industries SA (fictitious entity), an industrial group, closes its consolidated accounts on 31 December 20X6. File conventions: amounts in EUR; the losses of each scenario are given discounted; the original effective interest rate and the credit-adjusted rate are data; the recalculated gross carrying amount of a modified asset is the present value of the modified cash flows at the original effective interest rate (the file's recalculation method); file convention (pedagogical assumption, not imposed by IFRS 9): the expected loss of the credit line is computed as exposure × probability of default × loss given default, without discounting; differences are expressed as percentages; the entries are illustrative.

Derecognition and modification: decision tree for a transferred asset, extinguishment of a liability and the 10 % test on a modification

File of an industrial group: hybrid contracts and separation, modification of an asset, assets credit-impaired from origination, loan commitments and maximum exposure period

8 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 9 workpaper
Level
Expert
Estimated time
≈ 75 min
Progress
0 / 5 steps done (review excluded)

Context

Vestrel Industries SA (fictitious entity), an industrial group, closes its consolidated accounts on 31 December 20X6. Its central treasury holds a securitisation tranche and several loans, the group issued a bond indexed to copper, renegotiated a loan, acquired an already credit-impaired receivable and granted a revolving credit facility to its distributors. You prepare the analyses, calculations and entries of the file.

Assignment

Modification of loan Z: recalculated gross amount and modification loss

Purpose of the workpaper

Describe the transfer or renegotiation, walk through the decision tree (expiry of the rights, transfer, risks and rewards, control), document the judgments, compute the derecognition gain or loss and, for a modified liability, the 10 % test (present values at the original effective interest rate, net fees included), then prepare the entries. The assessment of "substantially all" and of control remains a judgment with no numerical threshold; present values are case calculations.

Questions of the file covered by this workpaper

  • Compute the recalculated gross carrying amount of the modified loan Z.
  • Compute the modification gain or loss of loan Z.
  • Record the modification loss on loan Z.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template