CERTYNEX IFRS ACADEMY

Taliora recognised as an expense in 20X1 250,000 of development expenditure on a sensor, as the criteria were not yet met. On 1 February 20X2, the project meets all the criteria for the first time. How is this 250,000 treated in the 20X2 financial statements?

It is reversed to income in 20X2 and recognised as an asset.

The 20X1 comparatives are restated to recognise it as an asset.

It remains an expense of 20X1 and is not part of the asset's cost.

It is added to cost when the sensor is ready for use.