CERTYNEX IFRS ACADEMY

To improve its operating cash flows, Ulvio presents as investing 420,000 of research spending recognised as an expense, on the ground that it prepares its future products. What is the error?

Research spending must be presented as financing, as it consumes equity.

There is no error; the intention to generate future revenue is enough.

The spending should have been excluded from the statement.

An outlay that does not result in an asset cannot be classified as investing.