Question 5 (A)(2 marks) Ahmed Ltd prepares financial statements to 31 March each year. Consider each of the following situations and determine in each case whether or not a provision should be recognised in the company's financial statements for the year to 31 March 2018. (1) On 23 January 2018, the board of directors decided to close down one of the company's operations. By 31 March 2018, this decision had been announced to the workforce and a detailed plan had been drawn up for its implementation. The closure would involve redundancy payments of 375,000. Answer (2) On 12 March 2018, the directors decided to close down another of the company's operations. This would involve redundancy payments of 250,000. At 31 March 2018, the decision had not been announced and had not yet been acted upon