Hello, could you please help me answers the following questions? A Holding company in the US is planning to take onboard one division away from its subsidiary, which also is in the US. All the employees in the division will be transferred to the Holding. Some Senior management of the subsidiary will be terminated in the process. Can the costs related to these changes, including the severance, be classified as discontinued operations items? Should these costs be included in EBITDA or classified below EBITDA? Are there any limits on how much can be restructured and are these costs a onetime expense or spread over a period of time e.g. if someone is entitled to a year severance, is that spread over the year or is it all incurred in one go? What expense and liability accounts should be used to book the entries? Many thanks for the feedbacks.
Accounting treatment for restructuring costs
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