CERTYNEX IFRS ACADEMY

A new IFRS allows, in its transitional provisions, the cumulative effect to be recognised at the date of initial application without restating comparatives. Fargenne's finance director nevertheless wants to apply the general retrospective treatment of IAS 8. What should be done?

The specific transitional provisions of the new IFRS apply.

The entity must apply the new IFRS prospectively, without any adjustment.

The general retrospective treatment of IAS 8 always overrides other standards' transitional provisions, whatever the new IFRS.

The entity may defer applying the new IFRS.