Question
1. Restructuring Provision On December 1, 2017 the management of SaulGroup, Inc. announced its plan to close a technical support division in California and move
1. Restructuring Provision
On December 1, 2017 the management of SaulGroup, Inc. announced its plan to
close a technical support division in California and move it to Vietnam. All the jobs in
this division will be eliminated by the end of 2018. To compensate the employees
who would stay with the company until the last day of their position, the company
offered a termination bonus of $15,000 to each employee. SaulGroup estimates it
will pay the termination bonuses at the end of 2018 for a total of $450,000. The
present value of the estimate termination bonus is $400,000.
a. How is the restructuring treated under (1) U.S. GAAP and (2) IFRS in 2017? Present journal entries.
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Auditing and Assurance Services A Systematic Approach
Authors: William Messier Jr, Steven Glover, Douglas Prawitt
10th edition
77732502, 978-0077732509
