CERTYNEX IFRS ACADEMY

In the second quarter, Corvane SA recognised a warranty provision of EUR 300,000. In the fourth quarter, it revises this estimate significantly, to EUR 520,000 (case data); the adjustment is recognised in the fourth quarter. No separate interim report is published for that quarter. What must it do in addition to recognising the adjustment?

Disclose the nature and amount of the change in a note to the annual financial statements of the year.

Restate the published interim reports of the first three quarters to show the amount of EUR 520,000, so that each period reflects the best final estimate.

Publish without delay a separate interim report for the fourth quarter, in order to communicate the change in estimate to readers.

Disclose nothing, a change in estimate applying prospectively without any information being required about the change itself.