CERTYNEX IFRS ACADEMY

Note by Lotine's controller: 'We are moving to the fair value model for our investment property; since fair value is an estimate, we are treating this move prospectively.' Where is the error?

Fair value is never an accounting estimate, whatever technique is used.

A change in measurement basis is a change in policy, not a change in estimate.

The move should have been treated as an error correction.

There is no error.