Based on an analysis of annual reports from 175 companies, the asset or liability with the most companies using estimates is for ________.
A) environmental liabilities
B) taxation
C) impairment of property, plant, and equipment
D) impairment of goodwill and other intangible assets

Question

Quizplus · Accepted Answer

Impairment of goodwill and other intangible assets often requires significant estimation due to the subjective nature of valuing these assets and predicting future cash flows, making it a common area for companies to use estimates.

Based on an Analysis of Annual Reports from 175 Companies