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There will occasionally be situations when management are required to significantly restructure the organization, which...

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Accounting

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There will occasionally be situations when management are required to significantly restructure the organization, which might mean selling off subsidiaries or operational units. This will result in a large loss (or potential gain) reported against income normally referred to as a big bath write-off. Explain big-bath accounting and discuss why and in what circumstances (provide an example) would a management team consider engaging in big bath accounting? What key factors should a finance professional analyze when making recommendations on write-offs

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