Division Example 5A Closure of a Division — No Im - AASB 137 - Provisions, Contingent Liabilities and Contingent Assets - July 2004 - Example 5A Closure of a Division — No Implementation Before End of the Reporting Period

Example 5A Closure of a Division – No Implementation Before End of the Reporting Period

On 12 December 2000, the board of an entity decided to close down a division. Before the end of the reporting period (31 December 2000) the decision was not communicated to any of those affected and no other steps were taken to implement the decision.

Present obligation as a result of a past obligating event – There has been no obligating event and so there is no obligation.

Conclusion – No provision is recognised (see paragraphs 14 and 72).

Example 5A Closure of a Division — No ImExample 5A Closure of a Division — No Implementation Before End of the Reporting Period

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Example 5A Closure of a Division – No Implementation Before End of the Reporting Period