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WorkpaperIAS 1 — Presentation of Financial StatementsL2 · L3

Preparation of total comprehensive income, the reconciliation of equity and the plan of the notes: accounting policies, judgments and estimates

9 missions8 sections to document75 min
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Not reviewed — human review required
Status
Published

Objective of the workpaper

Record profit or loss, the other comprehensive income items split between items that will be reclassified and items that will not, the movements in equity, the accounting policies and the judgments and estimates of the entity. Compute total comprehensive income, reconcile the closing balance of equity, then prepare the plan of the notes. The amounts, the policies and the assumptions are case data; the materiality of the information remains a judgment.

8 sections · 21 blocks · 2 calculations · 0 entries

  • IAS 1 §82A
  • IAS 1 §117

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

9 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Profit or loss and other comprehensive income, changes in equity and notes: policies, judgments and estimates
Case tasks documented here
  • Compute the subtotal of other comprehensive income that will be reclassified.
  • Compute total comprehensive income.
  • Reconcile closing equity.
  • Which accounting policy information is material?
  • Which judgments and estimation assumptions must be disclosed?
1

Facts and data

Inputs

  • Facts of the period: profit or loss, other comprehensive income, movements in equity, presentation retained

    TextRequired

    PROFIT_AND_OCI_OF_20X6_GROUPED_BETWEEN_ITEMS_RECLASSIFIED_AND_NOT

  • Accounting policies of the entity: choices, specifics, boilerplate information

    Text

  • Judgments made in applying the policies and estimation assumptions at the closing date

    Text

  • Profit for the period

    Number

    1,480,000

  • Other comprehensive income that will not be reclassified (net)

    Number

    260,000

  • Other comprehensive income that will be reclassified (net)

    Number

    50,000

  • Opening equity

    Number

  • Share issues of the period

    Number

  • Dividends declared in the period

    Number

  • Closing equity per the accounting records

    Number

2

Supporting documents

Evidence

  • Documents obtained and referenced (trial balance, statement of changes in equity, notes in preparation, minutes)

    EvidenceRequired

3

Analysis of the statements and the notes

Analysis

IAS 1 §82AIAS 1 §117

  • Points examined: comprehensive income, equity and notes

    ChecklistRequired

    • Other comprehensive income grouped between items that will and will not be reclassified to profit or loss
    • Total comprehensive income = profit or loss + other comprehensive income
    • Reconciliation of the opening and closing balances of each component of equity
    • Accounting policy information: material if it could reasonably be expected to influence the decisions of the primary users
    • Immaterial information that does not obscure material information
    • Judgments (other than estimations) and estimation assumptions carrying a risk of significant adjustment identified
4

Calculations

Calculations

IAS 1 §82A

  • Total comprehensive income (profit + items not reclassified + items reclassified)

    Calculation

    1,790,000

    Profit for the period ; Other comprehensive income that will not be reclassified (net) ; Other comprehensive income that will be reclassified (net)

  • Closing equity (opening + total comprehensive income + share issues − dividends)

    Calculation

    Opening equity ; Closing equity per the accounting records ; Total comprehensive income (profit + items not reclassified + items reclassified) ; Share issues of the period ; − Dividends declared in the period

5

Judgments: accounting policy information, judgments and estimates

Judgment

IAS 1 §117

  • Materiality of the accounting policy information

    JudgmentRequired

    Not applicable

    Material information to disclose / Immaterial information: omitted or shortened / Not applicable

    Professional judgment: information about a policy can be material by its nature even if the amounts are not; standardised information repeating the standard rarely is.

  • Rationale: influence on the decisions of the primary users, nature of the transaction, choice of the entity

    Text

  • Judgments and estimation uncertainty to disclose

    JudgmentRequired

    Not applicable

    Judgment to disclose: most significant effect on the amounts / Estimation uncertainty to disclose: risk of significant adjustment next year / No disclosure required / Not applicable

    Professional judgment: a judgment made in applying a policy is distinct from an estimation assumption; each has its own disclosure requirement.

  • Rationale: nature of the judgment or assumption, sensitivity, horizon of the next year

    Text

6

Items to document for the plan of the notes

Disclosure

IAS 1 §117

  • Information to prepare for the notes

    Checklist

    • Material accounting policy information
    • Judgments with the most significant effect on the amounts recognised
    • Estimation assumptions and major sources of uncertainty at the closing date
    • Reconciled statement of changes in equity
7

Conclusion

Conclusion

  • Total comprehensive income, reconciliation of equity, material accounting policy information and judgments and estimates to disclose

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Facts of the period describedPass
  • Policy information judged and supportedPass
  • Judgments and estimates judged and supportedPass
  • Recomputed closing equity = closing equity per the accounting recordsNot evaluated
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0