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Question - Iriga Company issued the 2020 financial statements on March 1, 2021. The following data are provided by the entity for the year ended December 31, 2020:
Amount owing to another entity for services rendered during December 2020 300,000
Estimated long service leave owing to employees in respect of past services 1,200,000
Estimated cost of relocating an employee from head office to a branch in another city (employee will physically relocate in January 2021) 100,000
Estimated cost for overhauling machine every 5 years (the machine is 5 years old on December 31, 2020) 150,000
Required - What amount should be recognized as provision on December 31, 2020?
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