A company should report a restructuring charge as an extraordinary item because these write-offs are not part of a company's ordinary and typical activities.

Question

Quizplus · Accepted Answer

A restructuring charge should not be reported as an extraordinary item because it is a part of a company's ordinary and typical activities. It is a sign of a company's decision to restructure to improve its future prospects.

A Company Should Report a Restructuring Charge as an Extraordinary