CERTYNEX IFRS ACADEMY

Braunal receives tradable rights free of charge from a public authority; no IFRS specifically deals with these rights (case data). The accountant proposes to apply a national GAAP rule straight away. Which approach should be followed?

Use the tax treatment of the rights, which offers an objective basis that a third party can verify.

Recognise nothing until the IASB issues a standard on these rights.

First examine IFRSs dealing with similar and related issues, then the Conceptual Framework.

Apply the national rule, which is more detailed, since no IFRS covers these rights.