CERTYNEX IFRS ACADEMY

Before the year-end, Calmeyre committed, within the meaning of IAS 37, to closing a workshop of its textile division and recognised a restructuring provision. How are the cash flows of this restructuring treated in the division's value in use?

Neither the savings nor the closure costs are included, because value in use always relates to the condition of the asset before any restructuring, whether committed or not.

The expected savings are included; the closure costs are dealt with through the IAS 37 provision.

Both the savings and the closure costs are included in the projections.

Only the closure costs are included, as the savings remain too uncertain.