CERTYNEX IFRS ACADEMY

The Nordeve group operates natural gas fields. At the reporting date, it reports expenditure on the development and extraction of a new field, predictive maintenance software acquired for its facilities and shares in a drilling company held as an investment, without control or significant influence. The management controller wants to account for all three items under IAS 38, as they lack physical substance. Which analysis do you retain?

The controller is right: all three items fall under IAS 38.

Only the software falls under IAS 38; the field expenditure and the shares are excluded from the scope.

The software and the field expenditure fall under IAS 38; only the shares are excluded.

The software and the shares fall under IAS 38; only the field expenditure is excluded.