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Sir in case of restructuring , constructive obligation for restructuring arises and therefore provision of restructuring should be recorded if Detailed formal plan is prepared and approved, and Plan is publicly announced (i.e announced to affected parties or their representatives) Or plan has been implemented?
Yes sir as per IAS 37 there should be a detailed formal plan and the plan has been announced to affected parties or their representatives.
But I am getting confused in this because of examiners answer in specimen paper 1 which says that :
IAS 37 Provisions, Contingent Liabilities and Contingent Assets states that a provision for restructuring should be made only when a detailed formal plan is in place and the entity has started to implement the plan, or announced its main features to those affected. A board decision is insufficient. Even though there has been no formal announcement of the restructuring, Kutchen has started implementing it and therefore it must be accounted for under IAS 37.In this para is it is written that entity has started to implement the plan
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