Prior to December 2017, Boston Ltd. announced two major restructuring plans to be implemented in the future. The first plan is to reduce its capacity by the closure of some of its smaller factories, which have already been identified. This will lead to the redundancy of 500 employees, who have all individually been selected and communicated with. The costs of this plan are $9.5 million in redundancy costs, $4.3 million in retraining costs and $5 million in lease termination costs. The second plan is to reorganize the finance and information technology department over a one-year period, but it does not commence for two years. The plan results in 20 per cent of finance staff losing their jobs during the restructuring. The costs of this plan are $12 million in redundancy costs, $6.2 million in retraining costs and $8.1 million in equipment lease termination costs.

Required:

1. Advise Boston on how the above accounting issues should be dealt with in its financial statements for the year ending 31 December 2017.

2. Prepare any necessary journal entries

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