In April 2021, Company A relocated Employee R from Company A's corporate office to an office...

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In April 2021, Company A relocated Employee R from Company A's corporate office to an office in another city. At May 31, 2021, the end of Company A's reporting period, the costs were estimated to be $48,000. An analysis of the costs is as follows: I. Costs for shipping goods Airfare Temporary accommodation costs (April and May) Temporary accommodation costs (June and July) Reimbursement for lease break costs (paid in June; $3,600 7,200 9,600 10,800 2,400 lease was terminated in April) Reimbursement for cost-of-living increases 14,400 (for the period April 15, 2021 to April 15, 2022) Required Calculate the total provision for relocation costs for Company A's financial statements as of May 31, 2021. Assume that IASB 137 applies to this provision and that the effect of discounting is immaterial. (Detail each cost in your explanation.) In April 2021, Company A relocated Employee R from Company A's corporate office to an office in another city. At May 31, 2021, the end of Company A's reporting period, the costs were estimated to be $48,000. An analysis of the costs is as follows: I. Costs for shipping goods Airfare Temporary accommodation costs (April and May) Temporary accommodation costs (June and July) Reimbursement for lease break costs (paid in June; $3,600 7,200 9,600 10,800 2,400 lease was terminated in April) Reimbursement for cost-of-living increases 14,400 (for the period April 15, 2021 to April 15, 2022) Required Calculate the total provision for relocation costs for Company A's financial statements as of May 31, 2021. Assume that IASB 137 applies to this provision and that the effect of discounting is immaterial. (Detail each cost in your explanation.)

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As per IAS 137 provision shall be recognised when a an entity has a present obligation legal or cons... View the full answer