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In reporting to its U.K. parent under IFRSs, how should Pharma account for the restructuring program for the year ended December 31, 2011? Alternative 1

In reporting to its U.K. parent under IFRSs, how should Pharma account for the restructuring program for the year ended December 31, 2011? Alternative 1 A restructuring plan exists as of December 31, 2011, under IFRSs. Pharma should record a provision for its restructuring plan for the year ended December 31, 2011. Alternative 2 A restructuring plan does not exist as of December 31, 2011, under IFRSs. Pharma should not record a provision for its restructuring plan for the year ended December 31, 2011. 2. In reporting to its U.S.-based lender in accordance with U.S. GAAP, how should Pharma account for the restructuring program for the year ended December 31, 2011? Alternative 1 A restructuring plan exists as of December 31, 2011, under U.S. GAAP. Pharma should record a provision for its restructuring plan for the year ended December 31, 2011. Alternative 2 A restructuring plan does not exist as of December 31, 2011, under U.S. GAAP. Pharma should not record a provision for its restructuring plan for the year ended December 31, 2011. The accounting issue is whether Pharma Co. should record a provision for the planned restructuring, which includes relocation of an existing manufacturing operation, for the year ended December 31, 2011. A secondary issue is what costs would be included in the restructuring provision if it is determined that a liability should be recognized at year-end. Your solution must be supported by cites from the appropriate professional literature: both IAS pronouncements and FASB Codification

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