Please answer the following questions:1. Describe the impact of asset impairment of property, plants, and equipment or goodwill to financial statements for entities across three different industries. Discuss similarities and differences and why these occur. In replies to peers, discuss whether you agree or disagree with your peers’ assessment and why.2. Identify three different industries and explain the revenue recognition practices that would be applied to entities within each industry. Discuss similarities and differences among the industries and why they exist. In replies to peers, provide additional practices that could be applied to the listed industries or examples of other industries that might have the same practices.Respond to the following with informative information.3. Class, let’s say you just read in the Wall Street Journal that a well-known company just had a large write-down of goodwill. What exactly does this say about management’s successes and failures?4. Impairment can be described as the abrupt changes in economic conditions, physical damage, changes in existing laws, or poor management rather than measuring how fair values decline (CFI.com, n.d.). In the real estate industry, a firm’s apartment building has a book value of $15M but shortly finds that the building appraises at $10M (Whalen, Baginski, & Bradshaw, 2018). GAAP requires a re-evaluation of future cash flows to determine impairment; if cash flows are greater than book value, no impairment is recorded (Whalen, Baginski, & Bradshaw, 2018). An international steel company originally acquired another firm for $13bn in 2006, but in 2013, due to weaker macroeconomics and market environment, management expected to revise cash flow expectation and thus had to record an impairment (CFI.com, n.d.). Some analysts may consider that the initial acquisition may demonstrate poor management investment practice or lack of future vision in the decline of market demands (CFI.com, n.d.).Reference CFI.com. (n.d.). What is impairment? Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/accounting/impairment/Whalen, J., Baginski, S., & Bradshaw, M. (2018). Financial reporting, financial statement analysis and valuation(9th ed.) Mason, OH: Cengage Learning. ISBN-13: 9781337614689
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