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On 2 December 2021, the board of directors of Pak It (Pty) Limited, a domestic packaging manufacturer, took a decision to abandon its Comubia cardboard
On 2 December 2021, the board of directors of Pak It (Pty) Limited, a domestic packaging manufacturer, took a decision to abandon its Comubia cardboard box factory. The decision to shut down the factory was as a result of the continuing operating losses of the Cornubia plant since the riots that took place in July 2021 in KZN. The decision to close was communicated to the employees and announced in the financial press on 2 December 2021. Pak It (Pty) Limited has three other South African packaging manufacturing plants, two of which manufacture the same product as the Soweto plant. The Soweto factory closed on 31 January 2022. Required: [12] Advise the directors of Shrinking (Pty) Limited on how to account for these matters in their 2021 annual financial statements
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