Question

Gotell (Pty) Ltd embarked on a retrenchment programme. The company made an offer to 10 employees over the age of 55 years for voluntary termination.    Advise Gotell (Pty) Ltd of the implications that this offer has regarding the recognition of a liability in their books of account.  Explain to Gotell (Pty) Ltd how the recognition of the liability would differ if Gotell (Pty) Ltd were terminating the employment.

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