Accountancy Forum

I am working on a project with a retrenchment. The business was restructuring and eliminating a plant and models. The retrenchment did not qualify as a discontinued operation.

The company estimated a loss of $10,000,000 and recorded said loss last year. New management is now looking at that loss and has decided against the retrenchment.

How should the $10,000,000 loss provision be treated? I am thinking it is simply a change in estimate. Thoughts?

refer IAS 37

YES DEAR YOU RIGHT.
ACCR TO IAS-37 ITS CHANGS IN ESTIMATS.
BECOZ DETERMINING PROVISIONS, USE FUL LIFE OF ASSETS AND THEIR
PETTERN OF CONSUMPTION BELONGS TO ACCOUNTING ESTIMATES.
AND ANY CHNGES IN THEIR CARRYING VALUES BELONG TO CHANGES IN
ESTIMATES. REMEMBER ON THING THAT PROVISION R ESTIMATES.
AND ANY CHANGES IN THEIR CARRYING AMOUNTS R CHANGE IN
PROVISION OF ESTIMATES.
REGARDS