On December 31, 2012, Holland Group Reported a Balance in Restructuring

Essay

On December 31, 2012, Holland Group reported a balance in Restructuring Provisions of €50.9 million, of which €12.5 million was expected to be paid in 2013, with the remainder to be settled during 2014-2015.The balance in this account at the start of the year was €84.0 million.During 2012, assume that Holland accrued restructuring charges of €14.2 million, and
reversed €7.3 million of previous charges.
REQUIRED:
a.Prepare all journal entries Holland made during 2012 related to its restructuring
activities.
b.How will Holland report its Restructuring Provision on its balance sheet for the year
ended December 31, 2012?
c.What is the effect of Holland's 2012 restructuring activities on its income statement?
How are these activities displayed on the statement of cash flows? Ignore tax effects.