QUESTION 4WT Ltd is a large company that consists of many divisions. The following are scenarios that need to bediscussed:Scenario 1: Management decided to combine the packaging department into the retail department.Management created a detailed, formal plan for restructuring and the plan was announced publicly to allthe shareholders on 30 September 2022. The company has a year end of 31 December 2022The following costs will be incurred:Implementation costsR250 000R 50 000Future Operating LossesAdvertisingR 25 000Discuss with reference to IAS37 whether the restructuring can be recognized as a provision.Indicate the amount at which it can be recognised?Scenario 2: An employee of RT Ltd was injured at work on 15 June 2022 due to faulty equipment, He issuing RT LTD. The lawyers have advised that it is probable that the company will be held liable and themost likely outcome would be R5 000 000.Discuss with reference to IAS37 whether the restructuring can be recognized as a provision?

Provisions, according to IAS 37, are obligations with undetermined time or amount. The following…

Discuss with reference to IAS37 whether the restructuring can be recognized as a provision. Indicate the amount at which it can be recognised? Scenario 2: An employee of RT Ltd was injured at work on 15 June 2022 due to faulty equipment, He is suing RT LTD. The lawyers have advised that it is probable that the company will be held liable and the most likely outcome would be R5 000 000. Discuss with reference to IAS37 whether the restructuring can be recognized as a provision?

Discuss with reference to IAS37 whether the restructuring can be recognized as a provision. Indicate the amount at which it can be recognised? Scenario 2: An employee of RT Ltd was injured at work on 15 June 2022 due to faulty equipment, He is suing RT LTD. The lawyers have advised that it is probable that the company will be held liable and the most likely outcome would be R5 000 000. Discuss with reference to IAS37 whether the restructuring can be recognized as a provision?

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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