Hi,
I am a bit confused about which standard to apply for recognizing termination benefits which is part of a restructuring program. While both standard would lead to a booking of an expense in the PNL but I am confused how to label it: Employee expense or Restructuring provision? I am referring to voluntarily termination benefits as part of a restructuring program. Can someone please help? Thanks.
Termination Benefits IAS 19 or IAS 37
Re: Termination Benefits IAS 19 or IAS 37
Seems like a restructuring provision (with disclosure) will do the trick. Presumably this is one element of various costs to be incurred as part of that restructuring.
IAS 19 scope says it includes items where an obligation arises and where there is no realistic alternative but to pay the benefit. Whereas your restructuring provision may not be communicated to specific people or could be where the restructuring plan has been announced but no obligation to individual people has arisen
IAS 19 scope says it includes items where an obligation arises and where there is no realistic alternative but to pay the benefit. Whereas your restructuring provision may not be communicated to specific people or could be where the restructuring plan has been announced but no obligation to individual people has arisen