CERTYNEX IFRS ACADEMY

For a transaction that no IFRS specifically addresses (case data), which steps taken by Bromia comply with IAS 8?

Apply a foreign standard directly, without examining IFRSs or the Conceptual Framework.

First examine IFRSs dealing with similar and related issues.

Then check whether the definitions and criteria of the Conceptual Framework apply.

Select the policy that achieves the budgeted profit target.

Use an industry practice consistent with those sources, documenting the reasoning.