Beruflich Dokumente
Kultur Dokumente
12. Restructuring provisions -are recognized only PRODUCT WARRANTIES providing for repair or
when the general recognition criteria for provisions replacement of defective products may be sold
are met. A constructive obligation to restructure separately or may be included in the sale price of the
arises only when an entity has a detailed formal plan product. If the warranty extends into the
for the restructuring, which identifies at least the next accounting period, a current liability for the
following: estimated amount of warranty expense
1. The business or the part of the business concerned; anticipated for the next period must be recorded. If
2. Principal locations affected; the warranty spans more than the next
3. Approximate number of employees that would period, the estimated liability must be partitioned
need to be compensated for termination resulting into a current and long-term portion.
from the restructuring (along with their function and
location);
4. Expenditure that would be required to carry out the CONTINGENT LIABILITIES
restructuring; and An obligation that is either:
5. Information as to when the plan is to be 1. A possible obligation arising from past events, the
implemented outcome of which will be confirmed only on the
occurrence or non-occurrence of one or more
Examples of events that may fall within the definition uncertain future events which are not wholly within
of restructuring are: the control of the reporting entity; or
1. A fundamental reorganization of an entity that has 2. A present obligation arising from past events, which
a material effect on the nature and focus of the is not recognized either because it is not probable
entity’s operations; that an outflow of resources will be required to settle
2. Drastic changes in the management structure—for an obligation or the amount of the obligation cannot
example, making all functional units autonomous; be measured with sufficient reliability.
3. Removing the business to a more strategic location Under IAS 37, the reporting entity does not recognize
or place by relocating the a contingent liability in its statement of financial
headquarters from one country or region to another; position. Instead, it should disclose in the notes to the
and financial statements the following information:
4. The sale or termination of a line of business (if 1. An estimate of its financial effect;
certain other conditions are satisfied, such that a 2. An indication of the uncertainties relating to the
restructuring could be considered a discontinued amount or timing of any outflow;
operation under IFRS 5). 3.The possibility of any reimbursement.