CERTYNEX IFRS ACADEMY

At 31 December 20X5, Idrane recognised a "provision for 20X6 operating losses" of 430,000 for its vehicle hire subsidiary, whose 20X6 budget shows a loss. What is the error?

The provision should have been presented as a trade payable of the period.

A provision for future operating losses is prohibited.

The amount should have been discounted.

The provision should have been built up over two years.