CERTYNEX IFRS ACADEMY

In its indirect reconciliation, Falquine uses the gross change in its consolidated inventories, without removing the 600,000 of inventories brought by a subsidiary acquired. What is the error?

The inventories brought in must be added a second time.

There is no error, the inventories being consolidated.

The change in inventories must be classified as investing, since part of it comes from acquiring a subsidiary.

Inventories brought in belong to the acquisition flow; the operating change excludes them.