The financial manager of Ande. inc is unsure of some aspects of the impairment calculation for an
Question:
The financial manager of Ande. inc is unsure of some aspects of the impairment calculation for an asset. In particular, in the estimation of future cash flows that is used to calculate the asset's value in use, which of the following factors are required to estimate future cash flows?
choices: (choose all answer that is appropriate)
- Assumptions that represent management's best estimate of the range of economic conditions that will exist over the asset's remaining useful life
- An increasing growth rate to extrapolate future cash flows beyond the budgeted period
- A steady or declining growth rate to extrapolate future cash flows for subsequent years beyond the budgeted period, unless an increasing rate can be justified
- The most recent budgets or forecasts approved by management
- Audited results for the past three years, on which the estimation can be based
- A growth rate that does not exceed the long-term average rate for the industry unless it can be justified
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus