CERTYNEX IFRS ACADEMY

Kirvore replaces its receivables provision matrix with a more granular model fed by recent data. Its accountant restates comparatives 'for the change in policy'. What is the error?

A change in estimation technique is a change in estimate, dealt with prospectively.

There is no error.

The new model should have been applied only to receivables arising after the change.

The original matrix was an error to be corrected retrospectively.