Give necessary explanation and detailed recommendations for the same

Issue 2 On 12 May 2025, the board of directors decided to close down a division making a particular product. On 28 May 2025 a detailed plan for closing down the division was agreed by the board; letters were sent to customers warning them to seek an alternative source of supply and redundancy notices were sent to the staff of the division. Some staff will be relocated, and the company will pay for relocation costs to relevant staff. The lease on the old factory continues for the next four months until it is closed. Unfortunately, the lease cannot be cancelled, and the factory cannot be re-let to another user. The costs associated with this shutdown are expected to be as follows: (a) Payout of staff annual leave $450,000. (b) Redundancy payout $800,000. ACC203 Advanced Financial Accounting Page 3 Assignment 3 Report (hh, (c) For those staff who will be moving to another division, retraining will be required at a cost of $500,000. (d) As another division is located 200km from the division being closed down, National Ltd agreed to pay for the costs of relocating those employees to another division. (e) The lease on old factory has five years to run. The cost of terminating the lease is expected to be $300,000. (f) The financial and management information systems of the division being closed need to be reconfigured to be comparable with another system, so that it can be used in the new division. This is estimated to cost approximately $1 million. (g) Expected loss due to closing down $979,000. The above costs will be paid during August 2025. We are unsure whether we need to include the above costs in the 2025 annual reports as a provision in accordance with AASB137. How should each item be treated? Please clearly explain the accounting treatment for each cost and the reasons supporting your recommendations