CERTYNEX IFRS ACADEMY

Brylbal is hesitant to apply its new policy retrospectively: the finance director prefers to 'show the catch-up in 2025 profit so investors see it'. Retrospective application is practicable (case data). What should he be told?

Retrospective application is required; the effect goes through opening equity and comparatives.

Catching up in profit is acceptable if presented on a separate line and explained.

The choice between the two treatments is free, subject to a note.

Catching up in profit is mandatory whenever the effect is material.