Accounting For The Restructuring Costs Of Lay ' M Off Co.

Layoffs are not always the best solution for a decline in company profits. A business must resolve the conflict that exists between their responsibility to meet economic targets and the ethical responsibility of non-maleficence. Furthermore, it must be determined if the layoffs would even maximize stakeholder welfare from a utilitarian perspective (Arce & Xin Li, 2011).

ASC 420-10-25-15 states that liabilities for other costs associated with the exit or disposal activity (420-10-25-14) shall be recognized when the liability is incurred. In our case, liability related to the relocation cost of $500,000 and staff training cost of $1.5 million, must be recognized by Pharma Co. later, when these costs will incur.

ASC 410-20-15-3(e) also states that the lessee’s obligation to perform a retirement activity shall be recorded as ARO unless the payment meets the definition of minimum lease payments or contingent rentals under the lease accounting literature (ASC 840, Leases). Per ASC 840-10-25-5, the minimum leases payment is any costs obligated to make in connection with the leased property. However, the lessee’s obligation to restore the leased asset to the original condition is related to the leasehold improvement, not directly related to the leased asset. Accordingly, the cost of removing the leasehold improvements is not part of the minimum lease payment. In addition, due to the ‘no renewal option’ and ‘no ability to negotiate for the renewal’ under the lease agreement, it is certain that NeedsLease will incur costs to restore the leased property to its original condition in 10 years, which excludes the ‘contingency’. Therefore, the cost of reinstating to the property’s original condition should be accounted as ARO in accordance with ASC 410-20. Per ASC 410-20-25-4, ARO should be recognized at its fair value of reasonably estimated future cash flows and to offset the liability, the lessee capitalize the

A nationwide company, Ballard Integrated Managed Services (BIMS) contracts with large organizations that prefer to focus on their own core competencies and lease support functions to outside vendors. Ballard Integrated Managed Services (BIMS) distinguishes itself in this highly competitive industry by combining several services: housekeeping, foodservice, general cleaning, and physical plant maintenance. (The University of Phoenix material, 2014, p.1). Though lately BIMS had noticed a rise in employee turnover as well as an increase in the use of employee sick time

release, the Company has stated its intention to dismantle the existing operation. The costs to reassemble the operation in the new facility have not yet been finalized. Required: • • In reporting to its U.K. parent under IFRSs, how should Pharma account for the above restructuring program for the year ended December 31, 2011? In reporting to its U.S.-based lender in accordance with U.S. GAAP, how should Pharma account for the restructuring program for the year ended December 31, 2011?

Refer to SFAS 146 (June 2002 "Accounting for Costs Associated with Exit or Disposal Activities");

On April 10, 2006, WCS and Metropolitan entered a standard form agreement to complete certain portions of the construction of a 397-unit apartment complex located in Camp Springs, Maryland. (E. 932, 947-1007). The agreement consisted of multiple contract documents including: AIA Document A131 CMc-2003 and AGC Document 556, Standard Form Agreement Between Owner and Construction Manager (E. 947-63); AIA Document A201 – 1997, General Conditions of the Contract for Construction (E.964-1007) (the “General Conditions”); and AIA Document A121 CMc – 2003, Amendment 1 (collectively, the “AIA Contract”) (E. 932). The AIA Contract named Metropolitan as the owner and WCS as the construction manager. (E. 947). Sections 11.4.5 and 11.4.7 of the General

Further, the Company has entered into irrevocable contracts with certain other relevant parties to affect the restructuring plan over the following 18 months.

c. Any payment that the lessee must make or can be required to make upon failure to renew or extend the

The installation or expansion of the project must be discontinued and the corporation must be

The layoffs are at the heart of the problem affecting the hospital. From the CEO’s perspective, the layoffs are a response to decreased revenues where the facility has to reduce its expenses to stay in operation. In the case of the operations director, the layoffs are a cost-cutting measure and an appropriate response to reduced activity in the hospital. However, the employees are likely to interpret the situation as a lack of proper management or concern for their welfare (Sobieralski & Nordstrom, 2012).

For the retention, it’s not applicable in your case pursuant to section 6.3 of the Contract’s

Lessee entered into a 5-year noncancelable lease for machinery having an estimated economic life of 15 years and a fair value to the lessor at the lease inception of $420,000. Lessor’s implicit rate is unknown, and Lessee’s incremental borrowing rate is 12%. Lessee uses the straight-line method to depreciate property and equipment. The lessee will pay rental payments of $5,300 per month, including $300 for property taxes and insurance, payable at the end of each month.

If and when this agreement is terminated there shall be a 30-day written notice. With the 30-day written notice all tangible and intellectual property that belongs to the Client shall be surrendered. Any monies owed the Provider shall be paid in full in the same 30-day period. Any proprietary or intellectual property that is not directly related to resident information shall remain with the Provider.

The job market today is difficult for both employees and employers. It hurts emotionally and financially to lose a job, and it is equally painful to have to terminate someone. Both sides struggle. If you work for an organization that may be facing layoffs, being prepared helps. Below are some tips