Which is evidence that a restructuring plan has started to be implemented?
ADismantling plant
BHiring new staff
CRenewing insurance
DDeclaring dividend
Answer & Solution
Correct answer: A. Dismantling plant
Dismantling plant, selling assets or publicly announcing the main features of the plan shows the plan has begun.
Keep practising AS 29 Provisions and Contingencies
Browse all AS 29 Provisions and Contingencies questions for CA Inter, or explore more Accounting topics.
Related questions
Use of estimates in preparing a provision:A present obligation where outflow is not probable is classed as a:To whom can an obligation be owed?Which obligation exists independently of the entity's future actions?A restructuring plan creates an obligation only if it is meant to:An executory contract falls within the provisions rules only if it is:Depreciation and doubtful debt provisions are really:A provision and contingent liability arise from the same facts. Disclosure should: