The link with IAS 37

Learning objectives

• Distinguish termination benefits (IAS 19) from other restructuring costs (IAS 37).L3
• Analyse the timing of recognition in a restructuring plan that involves employee departures.L3

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

1 question

• Hovel SA announces in November the closure of a factory. The individual redundancy payments offered to employees can no longer be withdrawn from 15 November. The plan also includes site restoration costs, unrelated to staff (case facts). Which analysis is consistent with the boundary between IAS 19 and IAS 37?L3