CERTYNEX IFRS ACADEMY

Brelmira's management, which cut maintenance capital spending to pay an exceptional dividend, is hesitant to publish the split between capacity-maintaining and capacity-increasing investment. What advice should be given?

The disclosure is mandatory: omitting it is non-compliance that the auditor must report.

The disclosure is encouraged and useful here to judge whether the entity maintains its capacity.

The disclosure is prohibited as commercially sensitive.

Disclosing undrawn facilities is enough.