Question
In April 2021, Company A relocated Employee R from Company As corporate office to an office in another city. At May 31, 2021, the end
In April 2021, Company A relocated Employee R from Company As corporate office to an office in another city. At May 31, 2021, the end of Company As reporting period, the costs were estimated to be $48,000. An analysis of the costs is as follows:Costs for shipping goods$3,600Airfare 7,200Temporary accommodation costs (April and May) 9,600Temporary accommodation costs (June and July)10,800Reimbursement for lease break costs (paid in June; 2,400lease was terminated in April)Reimbursement for cost-of-living increases14,400 (for the period April 15, 2021 to April 15, 2022)
Required
Calculate the total provision for relocation costs for Company As financial statements as of May 31, 2021. Assume that IASB 137 applies to this provision and that the effect of discounting is immaterial. (Detail each cost in your explanation.)
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