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Restructuring provision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Restructuring provision

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarP2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 1, 2020 at 5:15 pm #572536
    Avatariza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    Hi sir
    I’m a bit confused with this.
    Why are we not including cost of relocation , retraining costs etc
    Ias says because we include only costs that are directly related to restructuring
    Why are they not related ? I mean we wont Incur it if we aren’t restructuring

    June 4, 2020 at 5:07 pm #572871
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    They are related but they are part of the ongoing activities of the entity and they cannot be provided for as there is no obligation (legal or constructive) to relocate or retrain.

    Thanks

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