11-25-2009, 01:48 PM
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?
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?
