CERTYNEX IFRS ACADEMY

In February, the State expropriates a major plot of land of Quusian for an infrastructure project decided in January. The land was being used normally at the reporting date. How should the treatment be justified?

The expropriation should be ignored until the compensation has been set by the court.

The expropriation indicates a condition that arose after the reporting date: no adjustment, disclosure in general.

The expropriation compensation should be recognised as accrued income at 31 December.

The expropriation concerns an asset existing at the reporting date: it must be derecognised at 31 December.