Final answer:
Under GAAP, restructuring costs must be recognized in the period they are incurred, reflecting the principle that expenses should be recorded when they happen to provide an accurate financial picture.
Step-by-step explanation:
GAAP (Generally Accepted Accounting Principles) requires that restructuring costs should be recognized only in the period they are incurred, not allocated over several periods. This is because these costs are viewed as a consequence of a one-time event and in order to provide a clear and accurate picture of a company's financial situation, they must reflect the economic impact of such events as they happen, rather than spreading them out over time. Recognizing restructuring costs in the period incurred aligns with the matching principle of GAAP, which stipulates that expenses should be matched with the revenues they help to generate within the same period if possible.