In preparing the financial statements for the year ended 31 December 20X5 Alpha plc discovers the following, all of which are material in the context of the company's results:
• Development expenditure that met the required criteria of IAS 38 was previously capitalized and amortized. Alpha now believes that writing off all expenditure on development work would give a fairer presentation of the results.
• A debt that was previously considered to be collectable as at 31 December 20X4 now requires writing off.
• The estimate of costs payable in respect of litigation was €250 000 as at 31 December 20X4. This has now materialized at €280 000.
• The directors of Alpha are of the view that depreciating vehicles by the reducing balance method rather than the straight line method as previously used will present a fairer view of the financial performance of the company.
How would you treat the information above in preparing the financial statements at the end of 31 December 20X5? The treatment should be in line with IAS/IFRS.