Is Restructuring Reserve considered a Current Liability in Accounting?
Yes, the recognition and measurement of a liability for a restructuring generally occurs in the period when it is incurred, although the timing of the recognition may differ under US GAAP and IFRS. For more information, please see the following authoritative literature: US GAAP: paragraphs 3-6 of SFAS No. 146, “Accounting for Costs Associated With Exit or Disposal Activities”, as amended. Also, see paragraphs B60-B63 for a discussion of the differences between US GAAP and IFRS on this issue. IFRS: paragraphs 70-83 of IAS 37, “Provisions, Contingent Liabilities and Contingent Assets”, as amended.
