Final answer:
2) No, because these write-offs are part of a company's ordinary and typical activities.
A company should report a restructuring charge as an extraordinary item if it meets specific criteria defined by accounting standards. However, in many cases, restructuring charges can be considered part of a company's ordinary and typical activities.
Step-by-step explanation:
A company should report a restructuring charge as an extraordinary item if it meets the criteria defined by accounting standards. According to the Generally Accepted Accounting Principles (GAAP), extraordinary items are events that are both unusual in nature and infrequent in occurrence. Restructuring charges can meet these criteria if they result from major reorganizations or unplanned events that are not part of a company's ordinary and typical activities.
For example, if a company incurs expenses due to a restructuring that involves downsizing or closing divisions, these costs can be considered extraordinary items. However, if the restructuring charge is a routine expense resulting from regular business activities, it should not be classified as an extraordinary item.
Therefore, the answer to the question is No, because restructuring charges can be part of a company's ordinary and typical activities depending on the circumstances.