CERTYNEX IFRS ACADEMY

Quiline has just acquired a subsidiary that depreciates its trucks on a diminishing balance basis, whereas Quiline depreciates trucks with the same use on a straight-line basis. For the consolidated accounts, the controller proposes keeping both methods. What is the conclusion?

Similar assets must follow a consistent policy; harmonisation is needed unless a real difference in use is shown.

Keeping both methods complies if the diminishing balance method is more prudent.

Keeping both methods complies, as each company has its own policies.

The method that increases consolidated profit should be used.