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restructure provision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › restructure provision

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • October 22, 2015 at 7:08 pm #278468
    scarborough
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    Hi,

    If a company is relocating to save costs and they notified those affected prior to their year end and they have estimated the relocation costs to be 3M but these wont be paid until 2 month after year end…

    Has a constructive obligation occurred as those affected have been notified?

    Will a restructuring provision be required?

    October 23, 2015 at 8:27 am #278515
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Yes, there is a constructive obligation and so, yes, a provision should be made

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