Skip to content
Sign inRegister

Ask the Tutor ACCA SBR

restructure provision

AAdam10y ago
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?
MikeLittleMikeLittleTutor10y ago#1
Yes, there is a constructive obligation and so, yes, a provision should be made
Sign into reply to this topic.