Future costs associated with a restructuring can only be recognized if they:
A) will lead to a constructive obligation in the future.
B) will lead to a legal obligation in the future.
C) will lead to a constructive and legal obligation in the future.
D) will lead to a provision for restructuring cost.

Question

Quizplus · Accepted Answer

Future costs associated with a restructuring can only be recognized if they will lead to a constructive obligation in the future. A constructive obligation is an obligation that is not legally enforceable but is recognized because of ethical or moral reasons.

Future Costs Associated with a Restructuring Can Only Be Recognized