When a company offers termination benefits as the result of a restructuring plan, the special termination benefits should be:

Question

Quizplus · Accepted Answer

Special termination benefits offered as part of a restructuring plan should be recognized immediately and included with the restructuring costs on the income statement. This approach reflects the costs associated with the restructuring in the period in which the restructuring occurs and the commitments are made.

When a Company Offers Termination Benefits as the Result of a Restructuring