CERTYNEX IFRS ACADEMY

Rurnard's change in policy affects both retained earnings and another component of equity. What does IAS 8 require for the opening of the earliest period presented?

Put the whole adjustment in retained earnings, for simplicity, whatever component is actually affected.

Adjust the opening balance of each affected component of equity.

Recognise the adjustment in other comprehensive income of the period.

Adjust only the component with the larger amount.