Three sisters opened a spice store and cafe in South Bank, Brisbane called Spice Girls. The store was extremely successful until COVID-19. Unfortunately with a lot of customers working from home and not travelling into the City area for work, sales and profits declined. The sisters decided to close the store for 6 months. The sisters had a 3 year lease for a coffee machine in the store. The machine is bolted to the counter and cannot be removed. The sisters are unsure if they will be able to re-open the store at the end of the 6 months.

Required (answer all parts of the question):

(a) How would the above scenario be accounted for under AASB 137?

(1 mark)

(b) Discuss how the application of AASB 137 may influence the Spice Girls business decisions and corporate social responsibility (CSR).