The appearance of restructuring costs in corporate income statements increased significantly in the 1980s and 1990s and continues to be relevant today. Required: 1. What types of costs are included in restructuring costs? 2. When are restructuring costs recognized? 3. How would you classify restructuring costs in a multi-step income statement? 4. What factors would you consider in determining whether or not restructuring costs should be included in an assessment of a company’s permanent earnings?
The appearance of restructuring costs in corporate income statements increased significantly in the 1980s and 1990s and continues to be relevant today. Required: 1. What types of costs are included in restructuring costs? 2. When are restructuring costs recognized? 3. How would you classify restructuring costs in a multi-step income statement? 4. What factors would you consider in determining whether or not restructuring costs should be included in an assessment of a company’s permanent earnings?
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 7QE
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The appearance of restructuring costs in corporate income statements increased significantly in the 1980s and 1990s and continues to be relevant today. Required: 1. What types of costs are included in restructuring costs? 2. When are restructuring costs recognized? 3. How would you classify restructuring costs in a multi-step income statement? 4. What factors would you consider in determining whether or not restructuring costs should be included in an assessment of a company’s permanent earnings?
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