- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi sir,
I have trouble understanding the reason why the two conditions belong to provision as followed.
1 A company is leasing an office building for which it has no further use. However , it is tied into the lease for another year.
2 A company is closing down a division . The Board has prepared detailed closure plans which have been communicated to customers and employees.In the first case, the company has a definite obligation – no question! So need to provide for a further year’s rent UNLESS there is a very good chance that the company may be able to sub-let
There is a definite obligation – they have announced the closure and raised in the minds of those affected the valid expectation that the closure will go ahead
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.