FASB A CCOUNTING S TANDARDS C ODIFICATION C ASE #1 You are auditing a company that has recently reorganized its operations and, in the process, has incurred a significant amount of restructuring costs. As you learned in your intermediate accounting class, the accrual of restructuring costs not only impacts the income statement, but also results in the recording of liabilities on the balance sheet. These liabilities are often referred to as exit or disposal cost obligations. Your manager on the audit has requested that you obtain guidance about the reporting of these costs and liabilities in the financial statements. When completing your answers, you should consider the following: • All references to the FASB Accounting Standards Codification must be properly cited. • Appropriate organization, style, and grammar must be used. • The case must be completed in groups of 3 to 4 students. 1.
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