Costs associated with the restructuring of operations are recorded
A)when the commitment is put into action.
B)when the auditor deems them significant.
C)when the decision is made and planned by the board of directors.
D)as assets on the balance sheet until realized.

Question

Quizplus · Accepted Answer

Costs associated with the restructuring of operations are recorded when the commitment is put into action, as this is when the company actually incurs the expenses. The other options are not accurate: B is not necessarily true as the auditor's assessment of significance may not align with the company's accounting treatment, C is not accurate as the decision alone does not result in accounting treatment, and D is not accurate as these costs should not be recorded as assets on the balance sheet but rather as expenses in the period they are incurred.

Costs Associated with the Restructuring of Operations Are Recorded