When a company offers termination benefits as the result of a restructuring plan,the special termination benefits should be:
A) recognized with normal pension expense.
B) amortized over the average remaining service period.
C) amortized over a systematic and rational manner.
D) included with the restructuring costs on the income statement.

Question

Quizplus · Accepted Answer

Termination benefits resulting from a restructuring plan should be included with the restructuring costs on the income statement, as they are directly related to the restructuring activities.

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