Impact of such charges on current and future net income

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Reference no: EM13823248

Many companies incur restructuring charges as they attempt to reduce costs. They often label these items in the income statement as “non-recurring” charges to suggest that they are isolated events which are unlikely to occur in future periods. What is the impact of such charges on current and future net income? If there is a future benefit to these "non-recurring" charges, do you think that it is appropriate to expense the full amount in the period incurred?

Reference no: EM13823248

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