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The board of directors of City Scooters GmbH met in December 2016 and decided to close down a branch of the company's operations when the
The board of directors of City Scooters GmbH met in December 2016 and decided to close down a branch of the company's operations when the lease expired in the following August. The chief financial officer advised that termination benefits of 2.0 million are likely to be paid. Should the company recognise a liability for termination benefits in its financial statements for the year ended 31 December 2016? Justify your judgement with reference to the requirements of IAS 19.
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