Question 2(b): i. On 16 December 2018 the directors of Musa approved a program of restructuring involving the redundancy

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Question 2 B I On 16 December 2018 The Directors Of Musa Approved A Program Of Restructuring Involving The Redundancy 1 (40.91 KiB) Viewed 56 times

Question 2(b): i. On 16 December 2018 the directors of Musa approved a program of restructuring involving the redundancy of a large number of staff at a total cost of $400,000, together with the retraining of remaining staff at a cost of $200,000. Some of the remaining staff needed to be relocated at a cost of $150,000. ii. On 6 January 2019, shortly after the company's year-end of 31 December 2018, the directors announced the restructuring programme to their staff, identifying those to be made redundant. iii. The financial controller is unsure whether the announcement on 6 January 2019 represents an adjusting event under IAS 10 Events After the Reporting Period, and whether she should create a provision for the restructuring costs of $750,000. Required: For each of the above items (i) to (iii), advise the Financial Controller as to whether a provision should be created. (9 marks)