CERTYNEX IFRS ACADEMY

After a documented analysis, Vela SA's management concludes that compliance with a requirement of an IFRS Accounting Standard, for a particular transaction, would be so misleading that it would conflict with the objective of financial statements set out in the Conceptual Framework (judgement given by the case). The regulatory framework applicable to Vela does not prohibit a departure (case data). What does IAS 1 require?

In these extremely rare circumstances, depart from the requirement and provide the disclosures about the departure required by the Standard.

Apply the requirement in all cases, since a requirement of an IFRS Accounting Standard can never be set aside.

Depart from the requirement without any disclosure, since the departure serves to present the situation better.

Depart from the requirement only if the regulatory framework expressly requires that departure; if it merely does not prohibit it, apply the requirement.