Hang on, baby Jesus, this is gonna get bumpy! This quote by Ricky Bobby, played by Will Ferrel, in Talladega Nights aptly describes the current state of the job market in certain sectors of the economy. It’s no secret that the U.S. economy is slowing down and, as a result of rapid expansion and over-hiring (and over paying) workers during the last few years, many of these companies are bloated. They need to slash costs and, unfortunately for workers, the biggest cost for most companies is payroll. In this episode of GAAP Chats, Chris and I talk about the spate of recent layoffs, as well as the related accounting considerations. Resources: Blog: Accounting for restructuring charges under U.S. GAAP https://www.gaapdynamics.com/insights/blog/2020/04/21/planning-a-restructuring-heres-a-refresher-of-asc-420-and-asc-712/ Accounting for Restructuring Provisions and Related Termination Benefits (U.S. GAAP) https://revolution.gaapdynamics.com/learn/course/external/view/elearning/37/accounting-for-restructuring-provisions-and-related-termination-benefits Provisions and Contingencies: IAS 37 https://revolution.gaapdynamics.com/learn/course/external/view/elearning/274/provisions-and-contingencies-ias-37
