D. On 30 June 20X2, the directors of Delta decided to close down a division. This decision was announced to the employees affected on 15 July 20X2 and the actual closure occurred on 31 August 20X2, prior to the 20X2 financial statements being authorised for issue on 15 September. Expenses and other items connected with the closure were as follows: Redundancy costs (estimated) Staff retraining (actual) Operating loss for the 2 months to 31 August 20X2 (estimated at 30 June) Profit on sale of property $m 22 $m 10 $m 12 $m 5 The actual redundancy costs were $20 million and the actual operating loss for the two months to 31 August 20X2, was $15 million. Required

D. On 30 June 20X2, the directors of Delta decided to close down a division. This decision was announced to the employees affected on 15 July 20X2 and the actual closure occurred on 31 August 20X2, prior to the 20X2 financial statements being authorised for issue on 15 September. Expenses and other items connected with the closure were as follows: Redundancy costs (estimated) Staff retraining (actual) Operating loss for the 2 months to 31 August 20X2 (estimated at 30 June) Profit on sale of property $m 22 $m 10 $m 12 $m 5 The actual redundancy costs were $20 million and the actual operating loss for the two months to 31 August 20X2, was $15 million. Required

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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