CERTYNEX IFRS ACADEMY

Taurus SA used to classify its transport costs among administrative expenses. After reviewing its financial statements, its management concludes, following a documented analysis, that classification among distribution costs is more appropriate; no standard requires this change (case facts). Is this change of classification possible?

No: a change of presentation requires that an IFRS standard imposes it, otherwise the previous classification is kept.

Yes, but only provided that the entity's auditor has given prior approval.

Yes, as long as the new classification clearly improves the entity's published ratios.

Yes: a more appropriate presentation justifies the change, even without a standard.