As part of a restructuring plan, Patagonia informs 100 of its employees that they will be laid off and given cash as part of a severance plan. No additional work is required of employees to receive the cash payment. Assuming Patagonia follows U.S. GAAP, Patagonia should record its obligation to make these payments: Group of answer choices After the employees are laid off Never since this is a restructuring plan Immediately after communicating the plan to employees When the cash payments are made
As part of a restructuring plan, Patagonia informs 100 of its employees that they will be laid off and given cash as part of a severance plan. No additional work is required of employees to receive the cash payment. Assuming Patagonia follows U.S. GAAP, Patagonia should record its obligation to make these payments: Group of answer choices After the employees are laid off Never since this is a restructuring plan Immediately after communicating the plan to employees When the cash payments are made
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As part of a restructuring plan, Patagonia informs 100 of its employees that they will be laid off and given cash as part of a severance plan. No additional work is required of employees to receive the cash payment. Assuming Patagonia follows U.S. GAAP, Patagonia should record its obligation to make these payments:
Group of answer choices
After the employees are laid off
Never since this is a restructuring plan
Immediately after communicating the plan to employees
When the cash payments are made
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