CERTYNEX IFRS ACADEMY

Extract from Brorois's file: 'We are moving from weighted average cost to FIFO, because this choice increases this year's reported margin. The board approved it and the decision is documented.' What is the weakness of the file?

Moving to FIFO is prohibited as a matter of principle.

It does not show that the new policy provides reliable and more relevant information.

Board approval should have been shareholders' approval, the only body competent to change an accounting policy.

None: documentation and approval are enough.