Costs incurred while investigating and pursuing mutually exclusive proposed business restructurings (meaning that only one restructuring transaction can be completed) must be capitalized as part of the completed transaction costs.

How are restructuring costs accounted for?

Restructuring costs are reported as non-operating charges and aren't expected to recur in the future. Although they are non-recurring costs, they still are reported in the income statement and used to calculate the net income.

Are restructuring costs operating expenses?

Restructuring fees are nonrecurring operating expenses that show up as a line item on the income statement and factor into net income. Because the charge is an unusual or infrequent expense, it is less likely to impact shareholders' stakes in the company.