CERTYNEX IFRS ACADEMY

In the third quarter of 20X5, Cortane SA voluntarily changes its accounting policy for measuring inventories, with effect on the year 20X5 (a change within IAS 8, with no transitional provision of a new standard: case assumption). The reports of the first two quarters were published under the old policy. The cumulative effect at the beginning of the year can be determined (case data). What must Cortane SA do?

Apply the new policy from the third quarter, leaving unchanged the published reports of the first two quarters of 20X5, and presenting the effect of the change in a note to the report.

Reserve the new policy for the annual statements, the interim reports remaining prepared under the old policy until the 20X5 closing.

Restate the previous interim periods of 20X5, and the comparative periods concerned, under IAS 8, so that the same policy applies to the whole year.

Take the effect of the change to profit or loss of the third quarter, as a single amount, without restating the previous interim periods of the year.