CERTYNEX IFRS ACADEMY

The Fétède group enters into a new kind of capacity-sharing contract that no IFRS addresses (case data). A consultant recommends a foreign standard-setter's pronouncement, which the team has compared neither with neighbouring IFRSs nor with the Conceptual Framework. How should this be assessed?

The approach is correct: a recent foreign pronouncement is always enough.

The approach is incomplete: neighbouring IFRSs and the Conceptual Framework must be examined first.

The approach is correct if the foreign standard-setter is that of the parent's country.

The approach is correct if the auditor approves the foreign pronouncement before the close.