Premium
Corporate restructurings: Financial reporting of employee terminations under EITF 94‐3
Author(s) -
Rouse Robert W.,
Daniels Roger B.
Publication year - 1995
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970060303
Subject(s) - severance , restructuring , business , profitability index , accounting , finance , economics , labour economics
Corporate restructurings are reported frequently in the financial press. These cost‐cutting measures, aimed at enhancing the profitability of U.S. corporations in a competitive global economy, have resulted in the termination ofthousands of U.S. workers. Financial reporting for restructuring costs has varied widely in practice. This article discusses the definitive guidance of EITF 94‐3 in financial reporting for employee severance as part of corporate restructurings.