Charlie company leases the third and fourth floors of a 20-story building under an operating lease that expire on December 31, 2008.

On December 1st, 2003, in conjunction with the downsizing of its headquarters staff, Charlie decides to cease using the fourth flora effective January 1st, 2004.

Based on the market rentals, Charlie determines that it could sublease the fourth floor for $100,000 per year for the remaining five years, but decides not to do so on the cease-use-date. The rent allocable to the fourth floor is $150,000 a year. Credit adjusted Risk free rate is 6%.

2a. In reporting to its U.K.-parent under IFRS, how should Charlie Co. account for the restructuring program for the year ended December 31, 2003?

2b. provide all JEs for December 1st 2003, December 31st, January 1st 2004 , and December 31st 2004 . (If no entry, state NO ENTRY).