Redundancy payments
Version (a)
In Dec, 01, entity E has prepared a detailed formal plan under which employees may request voluntary redundancy. The plan corresponds with the requirements of IAS 19.134.
On Jan 02, 02, the plan is communicated to the representatives of E”s employees. It is planned to start implementing the plan in May 02.
Version (b)
The situation is the same as in version (a). However, the plan is communicated to the representatives of E”s employees on Dec 30, 01.
Required
Assess whether the circumstances described above necessitate recognition of a liability in E”s financial statements as at Dec 31, 01.
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