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POS Multiple Completion - when do reserves get hit

POS Multiple Completion - when do reserves get hit

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Looking at POS but with multiple completion. One disposal now, payment over 5 years. ER now. Am aware of the concern of possible new interpretation that it's not one disposal but more than one!

But my question is please when do the reserves get hit. My client doesn't have the cash, or borrowing ability, hence multiple completion. But does have the reserves today. My client doesn't want the reserves to be diminished in one go in the first year.  I am thinking "well if this transaction is set up for those companies that don't have the reserves, then why should the full amount be reduced now"? We are talking 300K - a set price - paid say 60K x 5 years. Would we need to make disclosure of the "probable liability" at all even if the reserves don't get hit.

Thank you.

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