CERTYNEX IFRS ACADEMY

An analyst increases an opening margin of 5,000 euros by interest accretion of 300 euros, calculated at 6%, the current market rate at the closing date. The group's original rate is 3% (case data). What is the error in this calculation?

It increases the margin by interest, whereas interest accretion is not a movement of the margin of this group.

It calculates the interest on the opening margin, whereas the correct base is the closing margin before release.

It applies the current rate at the closing date, whereas accretion is made at the group's original rate: 150 euros.

It applies the right rate, but it should have decreased the opening margin by that interest: 4,700 euros.