CERTYNEX IFRS ACADEMY

Ostelle SA publishes quarterly results. In the third quarter, the accountant measured accrued income and expenses as if the quarter were an isolated three-month year, without starting from the nine-month year-to-date figure measured as at an annual closing or deducting the amount already recognised. The nine-month figure obtained differs from the one an annual closing at that date would have given. What is the error?

The quarter must indeed be measured in isolation as an independent year, the year-to-date figure then resulting from adding the quarters with no further check.

The nine-month figure must equal three times the result of the third quarter, so as to spread the annual result regularly over the periods of the year.

The quarter's result must come from the year-to-date figure from the beginning of the year, measured as at an annual closing at that date, less the amount already recognised.

Measurement on the basis of an annual closing is required in the fourth quarter; until then, each quarter may be measured separately from the others.