Problem 3. The following costs are obtained regarding the restructuring of one of the business operations of DIP Inc. as of December 31, 2014: Direct expenditures arising from restructuring P1,000,000 Salaries of employees to be incurred after operations cease 2,000,000 Employee benefits associated with the closure of operations 3,000,000 Future operating losses 4,000,000 Cost of retraining or relocating continuing staff 5,000,000 Marketing or advertising program to promote the new company image 6,000,000 Investment in new system and distribution network 7,000,000 What is the total amount to be recognized as restructuring provision as of December 31, 2014?
Problem 3. The following costs are obtained regarding the restructuring of one of the business operations of DIP Inc. as of December 31, 2014: Direct expenditures arising from restructuring P1,000,000 Salaries of employees to be incurred after operations cease 2,000,000 Employee benefits associated with the closure of operations 3,000,000 Future operating losses 4,000,000 Cost of retraining or relocating continuing staff 5,000,000 Marketing or advertising program to promote the new company image 6,000,000 Investment in new system and distribution network 7,000,000 What is the total amount to be recognized as restructuring provision as of December 31, 2014?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 3. The following costs are obtained regarding the restructuring of one of the business
operations of DIP Inc. as of December 31, 2014:
Direct expenditures arising from restructuring P1,000,000
Salaries of employees to be incurred after operations cease 2,000,000
Employee benefits associated with the closure of operations 3,000,000
Future operating losses 4,000,000
Cost of retraining or relocating continuing staff 5,000,000
Marketing or advertising program to promote the new company image 6,000,000
Investment in new system and distribution network 7,000,000
What is the total amount to be recognized as restructuring provision as of December 31,
2014?
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