CERTYNEX IFRS ACADEMY

In December 20X5, Jarvenne announces to employees a closure plan that will begin only in 20X8 and run over five years. What effect does this timetable have on whether a constructive obligation exists?

None: the announcement is enough, whatever the timetable.

The long delay makes a valid expectation unlikely.

The timetable affects only the discounting of the provision.

The delay strengthens the obligation, as employees have more time to prepare.