According to current GAAP, termination benefits paid to an employee should be

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According to current GAAP, termination benefits paid to an employee should be charged to a loss. This is because termination benefits are considered a cost of exiting an activity and should be recognized in the period in which the obligations for termination benefits are incurred. The amount recognized should be based on the fair value of the benefits expected to be paid, considering factors such as the employee's years of service, age, and any other relevant factors. These costs should be recognized in the financial statements as an expense and included in the income statement.

According to Current GAAP, Termination Benefits Paid to an Employee