Question: Should company A create a provision for restructuring as part of its acquisition accounting entries? Explain your answer. How would your answer change if all

Should company A create a provision for restructuring as part of its acquisition accounting entries? Explain your answer. How would your answer change if all the circumstances are the same as those above except that company A decided that, instead of closing a division of company B, it would close down one of its own facilities?

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Part a Answer is no under both IAS 37 and IFRS 3 the acquirer cannot recognise the provi... View full answer

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