In 1999, Procter & Gamble (P & G) announced restructuring costs each quarter for the organization in 2005, a five-year comprehensive corporate restructuring program. In 1995, more questions about the Financial Accounting Standards Board Task Force (EITF) issued a consensus of opinion (EITF-94-3), which are defined for certain restructuring costs be recognized as a liability and are increased disclosure in the financial statements. However, as in other areas of accounting, had considerable freedom in how, when, and how the company can charge restructuring charge income. In December 2001, P & G was halfway through the organization in 2005. If P & G management forecasts remaining costs of the program in sufficient detail to recognize a liability in fiscal year 2002, the balance of the organization in 2005 of charges? Or whether it should continue to recognize the other costs of the program in each quarter, as the program progressed? How management should exercise its discretion, and as he must explain charges for investors? "Hide
by Mary E. Burt, Susan McKenzie Source: Stanford Graduate School of Business 27 pages. Publication Date: February 1, 2002. Prod. #: A183-PDF-ENG
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