CERTYNEX IFRS ACADEMY

At 31 December 20X1, Ternavia plans to invest 2,000,000 in 20X3 to increase the capacity of a logistics platform; the budget approved by management accordingly forecasts additional revenue from 20X4. No expenditure has yet been incurred. How should these items be treated in value in use at 31 December 20X1?

Include the additional revenue and the investment, since the budget is approved by management.

Include the additional revenue, but not the investment, which has not yet been incurred.

Include the investment out of prudence, but not the additional revenue.

Include neither.