CERTYNEX IFRS ACADEMY

On 20 January 20X6, before the 20X5 financial statements were authorised, Gervalis announced the material closure of its packaging division, decided in January. It recognised no provision at 31 December 20X5, rightly, but its 20X5 notes say nothing about this restructuring. What is the error?

A provision should have been recognised at 31 December 20X5.

The IAS 10 disclosure about this material restructuring was omitted.

The restructuring should have been restated in the 20X4 comparatives presented with the statements.

Half of the closure should have been provided for in 20X5.