CERTYNEX IFRS ACADEMY

What is the objective of the modified retrospective approach on transition?

To reproduce full retrospective application exactly by rebuilding all the historical cash flows of the group since issue, whatever the cost.

To take as the margin the difference between the fair value of the group and its fulfilment cash flows at the transition date, with no historical restatement.

To aim at the outcome closest to full retrospective application, using reasonable and supportable information available without undue cost.

To apply any simplification that reduces the cost of preparation, even if the outcome departs from full application.