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Big-batch restructuring charge

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Big-batch restructuring charge, identified by former SEC Chairman Arthur Levitt in his famous 1998 speech. What are benefits, both from economic and financial reporting perspective, that a company might expect to enjoy through recognizing big-batch restructuring charge?

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Big-batch restructuring charge

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BIG BATH is a business strategy in which a company manipulates its income statement to make poor results look even worse. Strategy being that the following year will show significant improvement. Big bath is sometimes employed by new CEOs to make their first years results more impressive by employing big bath accounting to prior year results.

source: http://www.ventureline.com/glossary_B.asp

The benefits of big bath (and not bi batch as described in the question) restructuring charge is that large restructuring charge help companies in cleaning up their Balance Sheets and thus giving them a sort of "Big ...

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  • MBA, Rochester Institute of Technology
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