CERTYNEX IFRS ACADEMY

Prisméa, an industrial group, reorganises its packaging division in 20X6: 120,000 of consultants' fees to redesign the organisation and 45,000 to move a team to another site. The board wishes to spread this 165,000 over the three years in which it expects productivity gains. Which treatment complies with IAS 38?

Recognise 165,000 as an intangible asset and amortise it over three years.

Recognise the 165,000 as an expense in 20X6.

Expense the move and capitalise the consultants' fees.

Recognise the fees as an intangible asset that is not amortised, since the gains are lasting.