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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › restructure provision
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?
Yes, there is a constructive obligation and so, yes, a provision should be made
