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Hi Mike,
I have a question in regards to redundancies.
If a company closes one its warehouses during the year (before their year end). They recorded a material loss on disposal. They have presented the costs of the closure within profit from discontinued operations.
The staff at the warehouse were relocated but before the year end the directors decided that redundancies would need to be made and that the value of this would be material. The redundancies will be announced after the year end.
As this is after the year end would this be a non adjusting even and would therefore need to be disclosed as it is material.
Is there anything else that would need to be done in this years financial statements?
Thank you
Did they make the ANNOUNCEMENT of redundancies before the year end? No? Then the situation or condition did not exist as at the year end so it’s a non-adjusting subsequent event
Nothing else needs to be done – so long as full and transparent disclosure is made of the non-adjusting event
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