CERTYNEX IFRS ACADEMY

Pyrgouël voluntarily changes a policy in 2025; the cumulative effect on prior years is a gain of 70,000. The accountant records it in 2025 profit as 'exceptional income'. What is the error?

The cumulative effect must adjust opening equity and comparatives, not 2025 profit.

There is no error if the income is presented separately.

The cumulative effect must never be recognised.

The cumulative effect should have been recognised in 2025 other comprehensive income, presented separately from other income.