CERTYNEX IFRS ACADEMY

In 2025, Galvorne finds that its trucks are wearing out faster than expected and reduces their remaining useful life. Its finance director proposes three treatments. Which one should be used?

Restate 2024 with the new life and adjust opening equity.

Change nothing before the end of the originally expected life.

Recompute depreciation from 2025 based on the carrying amount and the new remaining life.

Recognise in 2025 an exceptional charge equal to the cumulative 'missing' depreciation.