Workpapers
Workpaper template
Level 3 reconciliation and sensitivity
- Prepared by
- AI-assisted draft
- Reviewed by
- Not reviewed — human review required
- Status
- Published
Objective of the workpaper
For each category of level 3 items measured on a recurring basis (one instance per category), take the opening balance and the movements of the period (profit or loss, other comprehensive income, purchases, sales and settlements, transfers into and out of level 3), rebuild the closing balance, compare it with the reported balance, document the transfers, then prepare the reconciliation and the note on sensitivity to unobservable inputs.
8 sections · 20 blocks · 2 calculations · 0 entries
- IFRS 13 §93
- IFRS 13 §95
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- File and entity
- Level 3 instruments: classification, reconciliation and sensitivity
- Case tasks documented here
- Reconcile the level 3 balance and compare it with the reported balance.
- Prepare the table by level and the level 3 sensitivity note.
Inputs
InputsCategory of level 3 items and technique used
TextRequired
BILLETS_CONVERTIBLES_NON_COTES
Level 3 balance at the beginning of the period
Number
3,100,000
Gains recognised in profit or loss
Number
240,000
Gains recognised in other comprehensive income
Number
60,000
Purchases
Number
500,000
Sales and settlements
Number
400,000
Transfers into level 3
Number
350,000
Transfers out of level 3
Number
150,000
Level 3 balance reported at the end of the period
Number
3,700,000
Significant unobservable inputs and fair value changes for reasonably possible changes
Text
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Analysis of the movements
AnalysisIFRS 13 §93
Points reviewed: level 3 movements
ChecklistRequired
- Opening balance equal to the previous closing balance
- Gains or losses split between profit or loss and other comprehensive income
- Purchases, sales and settlements agreed to the contracts
- Transfers justified and timing policy applied consistently
- Closing balance equal to the reported balance
Reconciliation of the level 3 balance
CalculationsIFRS 13 §93
Closing balance rebuilt
Calculation
3,700,000
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Difference: reported − rebuilt
Calculation
0
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Transfers between levels
JudgmentIFRS 13 §93IFRS 13 §95
Characterisation of the transfers
JudgmentRequired
Transfer into level 3
Transfer into level 3 / Transfer out of level 3 / No transfer
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIFRS 13 §93
Items of the note
ChecklistRequired
- Reconciliation by class from the opening to the closing balance
- Line items where the gains and losses are recognised
- Sensitivity to unobservable inputs
Draft sensitivity note
Text
Conclusion
ConclusionReconciliation, transfers and sensitivity note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper and their verification status
References
Checks and financial statement impact
- Transfers documentedPass
- Reconciliation agreed to the reported balancePass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Fair value measurement file of an industrial and financial group
- Case tasks documented here
- Reconcile the level 3 balance with the reported balance.
- Prepare the disclosure: table by level, techniques and inputs, reconciliation.
Inputs
InputsCategory of level 3 items and technique used
TextRequired
INSTRUMENTS_FINANCIERS_DE_NIVEAU_3
Level 3 balance at the beginning of the period
Number
4,200,000
Gains recognised in profit or loss
Number
310,000
Gains recognised in other comprehensive income
Number
90,000
Purchases
Number
600,000
Sales and settlements
Number
500,000
Transfers into level 3
Number
200,000
Transfers out of level 3
Number
100,000
Level 3 balance reported at the end of the period
Number
4,800,000
Significant unobservable inputs and fair value changes for reasonably possible changes
Text
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Analysis of the movements
AnalysisIFRS 13 §93
Points reviewed: level 3 movements
ChecklistRequired
- Opening balance equal to the previous closing balance
- Gains or losses split between profit or loss and other comprehensive income
- Purchases, sales and settlements agreed to the contracts
- Transfers justified and timing policy applied consistently
- Closing balance equal to the reported balance
Reconciliation of the level 3 balance
CalculationsIFRS 13 §93
Closing balance rebuilt
Calculation
4,800,000
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Difference: reported − rebuilt
Calculation
0
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Transfers between levels
JudgmentIFRS 13 §93IFRS 13 §95
Characterisation of the transfers
JudgmentRequired
Transfer into level 3
Transfer into level 3 / Transfer out of level 3 / No transfer
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIFRS 13 §93
Items of the note
ChecklistRequired
- Reconciliation by class from the opening to the closing balance
- Line items where the gains and losses are recognised
- Sensitivity to unobservable inputs
Draft sensitivity note
Text
Conclusion
ConclusionReconciliation, transfers and sensitivity note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper and their verification status
References
Checks and financial statement impact
- Transfers documentedPass
- Reconciliation agreed to the reported balancePass
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
Inputs
InputsCategory of level 3 items and technique used
TextRequired
Level 3 balance at the beginning of the period
Number
Gains recognised in profit or loss
Number
Gains recognised in other comprehensive income
Number
Purchases
Number
Sales and settlements
Number
Transfers into level 3
Number
Transfers out of level 3
Number
Level 3 balance reported at the end of the period
Number
Significant unobservable inputs and fair value changes for reasonably possible changes
Text
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Analysis of the movements
AnalysisIFRS 13 §93
Points reviewed: level 3 movements
ChecklistRequired
- Opening balance equal to the previous closing balance
- Gains or losses split between profit or loss and other comprehensive income
- Purchases, sales and settlements agreed to the contracts
- Transfers justified and timing policy applied consistently
- Closing balance equal to the reported balance
Reconciliation of the level 3 balance
CalculationsIFRS 13 §93
Closing balance rebuilt
Calculation
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Difference: reported − rebuilt
Calculation
Level 3 balance at the beginning of the period ; Gains recognised in profit or loss ; Gains recognised in other comprehensive income ; Purchases ; − Sales and settlements ; Transfers into level 3 ; − Transfers out of level 3 ; Level 3 balance reported at the end of the period
Transfers between levels
JudgmentIFRS 13 §93IFRS 13 §95
Characterisation of the transfers
JudgmentRequired
Transfer into level 3 / Transfer out of level 3 / No transfer
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Disclosure
DisclosureIFRS 13 §93
Items of the note
ChecklistRequired
- Reconciliation by class from the opening to the closing balance
- Line items where the gains and losses are recognised
- Sensitivity to unobservable inputs
Draft sensitivity note
Text
Conclusion
ConclusionReconciliation, transfers and sensitivity note submitted to the reviewer
ConclusionRequired
Normative references
ReferencesParagraphs cited in this workpaper and their verification status
References