CERTYNEX IFRS ACADEMY

Tivane omitted a small accrued expense (immaterial according to the case data). Without it, profit just exceeds the threshold that triggers management bonuses. The finance director proposes not to record it 'since it is immaterial'. What is your conclusion?

The proposal is acceptable if the expense is recognised next year.

The proposal is acceptable if the bonuses are mentioned in the notes.

The proposal is acceptable: only the amount of the departure matters.

The proposal is inappropriate: the departure would be kept to achieve a particular presentation.