Question: What is the incentive for managers to overstate a restructuring reserve in the current period in order to reverse it in future periods, since overstating

What is the incentive for managers to overstate a restructuring reserve in the current period in order to reverse it in future periods, since overstating the restructuring reserve decreases net income in the current period?

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Managers may have several incentives to overstate a restructuring reserve in the current period even if it decreases net income in that period Some of ... View full answer

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