CERTYNEX IFRS ACADEMY

On 15 December 20X5, the board of Elbevane decides to close a plant; the detailed plan is announced to employees and customers only on 10 January 20X6, and nothing was started before the reporting date. The restructuring is material. What is the treatment at 31 December 20X5?

A provision, as the board's decision predates the reporting date.

No provision; disclosure under IAS 10.

A provision reduced by half because of the late announcement.

Neither a provision nor disclosure, as the announcement was later.