CERTYNEX IFRS ACADEMY

Nondot is considering changing the policy for presenting a line item. Three justifications are put forward. Which one can support a voluntary change?

The new policy reduces the accounting team's workload.

The foreign parent uses this policy in its local accounts.

The new policy makes profit less volatile from one year to the next, which pleases investors and eases the group's financial communication.

Analysts and lenders use information that the new policy makes more relevant, with no loss of reliability.