CERTYNEX IFRS ACADEMY

A flood in January destroys a plant of Queutane, intact at 31 December. The accountant recognises an impairment loss in the accounts for the year ended 31 December. What is the error?

The destruction is a non-adjusting event: no loss at the reporting date.

There is no error, any loss known before authorisation having to be recognised.

The loss should have been limited to the insurance excess borne by the entity.

The loss should have been taken directly to equity at 31 December.