Please consider each of the following items individually.

1. The ABC Mining Co. has announced that will restructure its Atlantic Canada operations and lay off 80% of workers in the area. The employees affected are informed and given six months' notice and promised generous severance packages at the end of six months.
2. The Board of Directors for the Dillon Timber Co. has decided to lay off 10% of its Canadian workforce. The plan is still in the proposal stage, and it is not clear which workers will be affected. The cost is likely to be in excess of $5 million. In responding to this item, please comment on whether this is similar to the scenario in part 1? Why or why not?
3. Ming Metals Ltd. has announced that it plans to perform site environmental remediation at its active British Columbia mine site. This remediation is in excess of provincial legislative requirements and will be performed when the mineral resources are depleted and the site is closed to active mining, likely in four years.
4. The Y34 Co. has guaranteed the $10 million loan of another company. This amount is material. The other company has a poor credit rating, and there is a 40% chance of having to make a $10 million payment under the guarantee.
5. The Week Co. has been audited by Canada Revenue Agency, resulting in a tax assessment for $1.5 million, an amount that would have a significant impact on the company's financial position. The company has appealed the decision and feels it has a good case.

Instructions:

For each of the above items, indicate whether the appropriate accounting treatment is to record a liability in the statement of financial position and report a loss in earnings, or to disclose in the notes, or do nothing. Your answer should be supported by reference to the appropriate section or sections of the CPA Handbook.