CERTYNEX IFRS ACADEMY

After long debates, Plairgence's technical committee concludes that a change cannot be classified with certainty as either a policy or an estimate. It decides to treat it retrospectively, 'for prudence'. What is the error?

The committee should have deferred the decision to the following year.

The change should have been treated as an error correction.

There is no error: prudence justifies retrospective treatment.

When in doubt, the change is treated as a change in estimate, hence prospectively.