CERTYNEX IFRS ACADEMY

Rochemaurel is closing its Valbrenne site; the direct restructuring expenditures amount to 1,600,000. It expects to sell the site at a gain of 700,000 and has recognised a net provision of 900,000. What is the error?

The provision should have been presented as a deduction from the value of the site.

The expected disposal gain must not be deducted: the provision is 1,600,000.

The provision should have been 2,300,000, including the gain.

No provision is due, since the sale produces a gain.