Restructuring provision

• Restructuring plan (business concerned, locations, employees to be compensated, expenditures, timetable)

  TextRequired

  PLESSAC_WEAVING_PLANT_CLOSURE

• Date of the decision of management or the board

  Date

  20X3-11-14

• Date implementation of the plan started or its main features were announced to those affected

  Date

  20X3-12-05

• Reporting date

  DateRequired

  20X3-12-31

• Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

  Table

  REDUNDANCY · REDUNDANCY_PAYMENTS · 1,530,000 | PENALTIES · SUPPLIER_CONTRACT_PENALTIES · 45,000 | LOOMS · LOOM_REMOVAL · 160,000

  Sorting eligible expenditures from excluded costs comes before the calculation; the amounts are case data or estimates. Without a constructive obligation at the reporting date, no expenditure is retained.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37IAS 37 §10IAS 37 §70IAS 37 §71

• Points examined

  ChecklistRequired

  • Programme planned and controlled by management that materially changes the scope of the business or the manner in which it is conducted
  • Sale or termination of a line of business, closure or relocation of sites, elimination of a layer of management, fundamental reorganisation
  • General recognition criteria for provisions applied to the restructuring
  • Discontinued operation: IAS 37 applies, and IFRS 5 may require additional disclosures

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Detailed formal plan: business concerned, principal locations, location, function and approximate number of employees to be compensated, expenditures, implementation date
  • Valid expectation in those affected: implementation started (dismantling, sale of assets) or sufficiently detailed announcement of the main features
  • Implementation planned to begin as soon as possible and over a timeframe making significant changes unlikely
  • Decision taken before the reporting date with neither implementation started nor announcement before that date: no constructive obligation
  • Implementation started or announcement after the reporting date: disclosure under IAS 10 if the restructuring is material
  • Obligation that may result from earlier events together with the decision
  • Board including representatives of other interests (employees): its decision, involving their being informed, may create a constructive obligation
  • Sale of an operation: no obligation before a binding sale agreement; assets tested under IAS 36

IAS 37 §51IAS 37 §80IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Direct expenditures: both necessarily entailed by the restructuring and not associated with the ongoing activities
  • Excluded: retraining or relocating continuing staff, marketing, investment in new systems and distribution networks
  • Excluded: identifiable future operating losses up to the date of the restructuring, unless they relate to an onerous contract
  • Excluded: gains on the expected disposal of assets, even if the sale is part of the restructuring

• Costs and gains excluded from the provision (nature, amount, reason for exclusion)

  Table

  RETRAINING · RETRAINING_TRANSFERRED_STAFF · 120,000 · CONTINUING_ACTIVITIES | RELOCATION · RELOCATION_RETAINED_STAFF · 90,000 · CONTINUING_ACTIVITIES | MARKETING · MARKETING_CAMPAIGN · 70,000 · CONTINUING_ACTIVITIES | SOFTWARE · NEW_PLANNING_SOFTWARE · 250,000 · NEW_SYSTEMS | LOSSES · OPERATING_LOSSES_TO_CLOSURE · 380,000 · FUTURE_OPERATING_LOSSES | BUILDING_GAIN · EXPECTED_GAIN_ON_BUILDING_SALE · 210,000 · DISPOSAL_GAINS

IAS 37 §80

• Restructuring provision (sum of the eligible direct expenditures only)

  CalculationRequired

  1,735,000

  Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

• Recognition of the restructuring provision

  Entry

  Account	Debit	Credit
  Restructuring expense	1,735,000
  Provision		1,735,000

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37 §80IAS 37

• Existence of a constructive obligation at the reporting date

  JudgmentRequired

  Constructive obligation: provision for the eligible direct expenditures

  Constructive obligation: provision for the eligible direct expenditures / Decision neither implemented nor announced at the reporting date: no provision / Announcement or start of implementation after the reporting date: no provision, disclosure under IAS 10 / Sale without a binding agreement: no obligation for the sale

  Professional judgement: whether the plan and the announcement are sufficiently detailed is assessed in the light of the facts of the case (paras. 72 to 75).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 37IAS 37IAS 37 §84IAS 37 §85

• Items passed to the notes workpaper (“Note: provisions and contingencies”)

  ChecklistRequired

  • Restructuring class in the roll-forward (provision made in the period)
  • Nature, expected timing of outflows, uncertainties and major assumptions
  • Restructuring started or announced after the reporting date: disclosure under IAS 10 if material
  • Discontinued operation: possible additional disclosures under IFRS 5

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The restructuring plan is describedPass
• The existence of a constructive obligation is documentedPass
• The provision entry is balancedPass

Assets

0

Liabilities

1,735,000

Profit or loss

-1,735,000

OCI

0

Equity

-1,735,000

• Restructuring plan (business concerned, locations, employees to be compensated, expenditures, timetable)

  TextRequired

  IBERIA_SALES_NETWORK_REORGANISATION

• Date of the decision of management or the board

  Date

  20X3-12-20

• Date implementation of the plan started or its main features were announced to those affected

  Date

  20X4-01-15

• Reporting date

  DateRequired

  20X3-12-31

• Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

  Table

  Sorting eligible expenditures from excluded costs comes before the calculation; the amounts are case data or estimates. Without a constructive obligation at the reporting date, no expenditure is retained.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37IAS 37 §10IAS 37 §70IAS 37 §71

• Points examined

  ChecklistRequired

  • Programme planned and controlled by management that materially changes the scope of the business or the manner in which it is conducted
  • Sale or termination of a line of business, closure or relocation of sites, elimination of a layer of management, fundamental reorganisation
  • General recognition criteria for provisions applied to the restructuring
  • Discontinued operation: IAS 37 applies, and IFRS 5 may require additional disclosures

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Detailed formal plan: business concerned, principal locations, location, function and approximate number of employees to be compensated, expenditures, implementation date
  • Valid expectation in those affected: implementation started (dismantling, sale of assets) or sufficiently detailed announcement of the main features
  • Implementation planned to begin as soon as possible and over a timeframe making significant changes unlikely
  • Decision taken before the reporting date with neither implementation started nor announcement before that date: no constructive obligation
  • Implementation started or announcement after the reporting date: disclosure under IAS 10 if the restructuring is material
  • Obligation that may result from earlier events together with the decision
  • Board including representatives of other interests (employees): its decision, involving their being informed, may create a constructive obligation
  • Sale of an operation: no obligation before a binding sale agreement; assets tested under IAS 36

IAS 37 §51IAS 37 §80IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Direct expenditures: both necessarily entailed by the restructuring and not associated with the ongoing activities
  • Excluded: retraining or relocating continuing staff, marketing, investment in new systems and distribution networks
  • Excluded: identifiable future operating losses up to the date of the restructuring, unless they relate to an onerous contract
  • Excluded: gains on the expected disposal of assets, even if the sale is part of the restructuring

• Costs and gains excluded from the provision (nature, amount, reason for exclusion)

  Table

IAS 37 §80

• Restructuring provision (sum of the eligible direct expenditures only)

  CalculationRequired

  0

  Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

• Recognition of the restructuring provision

  Entry

  Debit Restructuring expense ← Restructuring provision (sum of the eligible direct expenditures only) ; Credit Provision ← Restructuring provision (sum of the eligible direct expenditures only)

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37 §80IAS 37

• Existence of a constructive obligation at the reporting date

  JudgmentRequired

  Announcement or start of implementation after the reporting date: no provision, disclosure under IAS 10

  Constructive obligation: provision for the eligible direct expenditures / Decision neither implemented nor announced at the reporting date: no provision / Announcement or start of implementation after the reporting date: no provision, disclosure under IAS 10 / Sale without a binding agreement: no obligation for the sale

  Professional judgement: whether the plan and the announcement are sufficiently detailed is assessed in the light of the facts of the case (paras. 72 to 75).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 37IAS 37IAS 37 §84IAS 37 §85

• Items passed to the notes workpaper (“Note: provisions and contingencies”)

  ChecklistRequired

  • Restructuring class in the roll-forward (provision made in the period)
  • Nature, expected timing of outflows, uncertainties and major assumptions
  • Restructuring started or announced after the reporting date: disclosure under IAS 10 if material
  • Discontinued operation: possible additional disclosures under IFRS 5

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The restructuring plan is describedPass
• The existence of a constructive obligation is documentedPass
• The provision entry is balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Restructuring plan (business concerned, locations, employees to be compensated, expenditures, timetable)

  TextRequired

  ROCBRUNE_DISTRIBUTION_CENTRE_CLOSURE

• Date of the decision of management or the board

  Date

  20X5-10-08

• Date implementation of the plan started or its main features were announced to those affected

  Date

  20X5-11-20

• Reporting date

  DateRequired

  20X5-12-31

• Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

  Table

  SEVERANCE · SEVERANCE_PAYMENTS · 640,000 | TRANSPORT · TRANSPORT_SUBCONTRACT_PENALTY · 60,000 | RACKING · RACKING_DISMANTLING · 45,000

  Sorting eligible expenditures from excluded costs comes before the calculation; the amounts are case data or estimates. Without a constructive obligation at the reporting date, no expenditure is retained.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37IAS 37 §10IAS 37 §70IAS 37 §71

• Points examined

  ChecklistRequired

  • Programme planned and controlled by management that materially changes the scope of the business or the manner in which it is conducted
  • Sale or termination of a line of business, closure or relocation of sites, elimination of a layer of management, fundamental reorganisation
  • General recognition criteria for provisions applied to the restructuring
  • Discontinued operation: IAS 37 applies, and IFRS 5 may require additional disclosures

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Detailed formal plan: business concerned, principal locations, location, function and approximate number of employees to be compensated, expenditures, implementation date
  • Valid expectation in those affected: implementation started (dismantling, sale of assets) or sufficiently detailed announcement of the main features
  • Implementation planned to begin as soon as possible and over a timeframe making significant changes unlikely
  • Decision taken before the reporting date with neither implementation started nor announcement before that date: no constructive obligation
  • Implementation started or announcement after the reporting date: disclosure under IAS 10 if the restructuring is material
  • Obligation that may result from earlier events together with the decision
  • Board including representatives of other interests (employees): its decision, involving their being informed, may create a constructive obligation
  • Sale of an operation: no obligation before a binding sale agreement; assets tested under IAS 36

IAS 37 §51IAS 37 §80IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Direct expenditures: both necessarily entailed by the restructuring and not associated with the ongoing activities
  • Excluded: retraining or relocating continuing staff, marketing, investment in new systems and distribution networks
  • Excluded: identifiable future operating losses up to the date of the restructuring, unless they relate to an onerous contract
  • Excluded: gains on the expected disposal of assets, even if the sale is part of the restructuring

• Costs and gains excluded from the provision (nature, amount, reason for exclusion)

  Table

  RETRAINING · RETRAINING_RETAINED_STAFF · 55,000 · CONTINUING_ACTIVITIES | WMS · NEW_WAREHOUSE_SYSTEM · 180,000 · NEW_SYSTEMS | CAMPAIGN · CUSTOMER_CAMPAIGN · 25,000 · MARKETING | LOSSES · OPERATING_LOSSES_TO_CLOSURE · 90,000 · FUTURE_OPERATING_LOSSES | FORKLIFTS · EXPECTED_GAIN_ON_FORKLIFTS · 30,000 · DISPOSAL_GAINS

IAS 37 §80

• Restructuring provision (sum of the eligible direct expenditures only)

  CalculationRequired

  745,000

  Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

• Recognition of the restructuring provision

  Entry

  Account	Debit	Credit
  Restructuring expense	745,000
  Provision		745,000

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37 §80IAS 37

• Existence of a constructive obligation at the reporting date

  JudgmentRequired

  Constructive obligation: provision for the eligible direct expenditures

  Constructive obligation: provision for the eligible direct expenditures / Decision neither implemented nor announced at the reporting date: no provision / Announcement or start of implementation after the reporting date: no provision, disclosure under IAS 10 / Sale without a binding agreement: no obligation for the sale

  Professional judgement: whether the plan and the announcement are sufficiently detailed is assessed in the light of the facts of the case (paras. 72 to 75).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 37IAS 37IAS 37 §84IAS 37 §85

• Items passed to the notes workpaper (“Note: provisions and contingencies”)

  ChecklistRequired

  • Restructuring class in the roll-forward (provision made in the period)
  • Nature, expected timing of outflows, uncertainties and major assumptions
  • Restructuring started or announced after the reporting date: disclosure under IAS 10 if material
  • Discontinued operation: possible additional disclosures under IFRS 5

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The restructuring plan is describedPass
• The existence of a constructive obligation is documentedPass
• The provision entry is balancedPass

Assets

0

Liabilities

745,000

Profit or loss

-745,000

OCI

0

Equity

-745,000

• Restructuring plan (business concerned, locations, employees to be compensated, expenditures, timetable)

  TextRequired

  JUNQUERA_SUBSIDIARY_SALE

• Date of the decision of management or the board

  Date

  20X5-12-18

• Date implementation of the plan started or its main features were announced to those affected

  Date

• Reporting date

  DateRequired

  20X5-12-31

• Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

  Table

  Sorting eligible expenditures from excluded costs comes before the calculation; the amounts are case data or estimates. Without a constructive obligation at the reporting date, no expenditure is retained.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 37IAS 37 §10IAS 37 §70IAS 37 §71

• Points examined

  ChecklistRequired

  • Programme planned and controlled by management that materially changes the scope of the business or the manner in which it is conducted
  • Sale or termination of a line of business, closure or relocation of sites, elimination of a layer of management, fundamental reorganisation
  • General recognition criteria for provisions applied to the restructuring
  • Discontinued operation: IAS 37 applies, and IFRS 5 may require additional disclosures

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Detailed formal plan: business concerned, principal locations, location, function and approximate number of employees to be compensated, expenditures, implementation date
  • Valid expectation in those affected: implementation started (dismantling, sale of assets) or sufficiently detailed announcement of the main features
  • Implementation planned to begin as soon as possible and over a timeframe making significant changes unlikely
  • Decision taken before the reporting date with neither implementation started nor announcement before that date: no constructive obligation
  • Implementation started or announcement after the reporting date: disclosure under IAS 10 if the restructuring is material
  • Obligation that may result from earlier events together with the decision
  • Board including representatives of other interests (employees): its decision, involving their being informed, may create a constructive obligation
  • Sale of an operation: no obligation before a binding sale agreement; assets tested under IAS 36

IAS 37 §51IAS 37 §80IAS 37IAS 37IAS 37

• Points examined

  ChecklistRequired

  • Direct expenditures: both necessarily entailed by the restructuring and not associated with the ongoing activities
  • Excluded: retraining or relocating continuing staff, marketing, investment in new systems and distribution networks
  • Excluded: identifiable future operating losses up to the date of the restructuring, unless they relate to an onerous contract
  • Excluded: gains on the expected disposal of assets, even if the sale is part of the restructuring

• Costs and gains excluded from the provision (nature, amount, reason for exclusion)

  Table

IAS 37 §80

• Restructuring provision (sum of the eligible direct expenditures only)

  CalculationRequired

  0

  Direct expenditures of the restructuring retained (necessarily entailed by it and not associated with the ongoing activities)

• Recognition of the restructuring provision

  Entry

  Debit Restructuring expense ← Restructuring provision (sum of the eligible direct expenditures only) ; Credit Provision ← Restructuring provision (sum of the eligible direct expenditures only)

IAS 37IAS 37 §73IAS 37IAS 37IAS 37IAS 37 §80IAS 37

• Existence of a constructive obligation at the reporting date

  JudgmentRequired

  Sale without a binding agreement: no obligation for the sale

  Constructive obligation: provision for the eligible direct expenditures / Decision neither implemented nor announced at the reporting date: no provision / Announcement or start of implementation after the reporting date: no provision, disclosure under IAS 10 / Sale without a binding agreement: no obligation for the sale

  Professional judgement: whether the plan and the announcement are sufficiently detailed is assessed in the light of the facts of the case (paras. 72 to 75).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 37IAS 37IAS 37 §84IAS 37 §85

• Items passed to the notes workpaper (“Note: provisions and contingencies”)

  ChecklistRequired

  • Restructuring class in the roll-forward (provision made in the period)
  • Nature, expected timing of outflows, uncertainties and major assumptions
  • Restructuring started or announced after the reporting date: disclosure under IAS 10 if material
  • Discontinued operation: possible additional disclosures under IFRS 5

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The restructuring plan is describedPass
• The existence of a constructive obligation is documentedPass
• The provision entry is balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0