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It is hoping that there will be huge cost savings after layoffs and plant closings. For instance, by offering buyout packages, it aims to reduce $5 billion in operating costs. The company is also looking to make its production more strategic by concentrating on core products and expected best setters.
The Issue: Are the preceding events classified as Discontinued Operations, as of now?
Record an Asset as a discontinued operation if: a) the operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the enterprise; b) the enterprise will not have any significant continuing involvement in the component after the disposal transaction...
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