The board of directors of City Scooters Ltd met in June 2013 and decided to close down

Question:

The board of directors of City Scooters Ltd met in June 2013 and decided to close down a branch of the company's operations when the lease expired in the following February. The chief financial officer advised that termination benefits of $2.0 million are likely to be paid. Should the company recognize a liability for termination benefits in its for the year ended June 2013? Justify your judgement with reference to the requirements of IAS 19.
Financial Statements
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