IFRS/ias discussion - organiser page

Thanks a lot to the founder of IFRS/IAS discussions sir Zeshan Adil for all the dedication and passion towards building such a large community of accountants globally. I wish you a happy new year and happy birthday too.

A company announces restructuring plan under which certain employees will be made redundant. The plan is announced before the year ended 2022. The early termination benefits to be paid are £1000 provided employees continue to work till the end of restructuring in 2 years time by end of year 2024. Such How this should be accounted for?

Dear All there were some heated debates on below question. It is so good to see the enthusiasm but I do feel sometimes the exchanges on the post between some members were more aggressive. Kindly be respectful of each other.

The answer to the below in my view should be:
1. It is not usual for FVOCI investment to be disposed below or above its fair value. I am assuming the disposal price is the FV and hence you will first increase the value of investment by 20 and credit OCI reserve.

2. After that the OCI reserve can stay there forever. But You have an OPTION to move the OCI reserve to retained earnings upon disposal.

As much as I want to approve everyone's post but given the traffic and numbers posts, priority will be given to accounting questions. Some of dear members want to ask for a copy of IFRS or other study texts, sadly I ll have to decline the posts in order to maintain space for good quality discussion.

Hi All

Our current set up is a Group. Created this Page to allow more functionality as options at Group are limited. Slowly we will move future posting to this page. Therefore it is requested to move to this page by pressing LIKE.

Regards