An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement: “The Company periodically evaluates long-lived assets for impairment when circumstances...

An annual report of Costco Wholesale Corporation, the large discount company, contained the following statement:

“The Company periodically evaluates long-lived assets for impairment when circumstances occur that may indicate the carrying amount of the asset group may not be fully recoverable”.




Why would the concept of impairment be referred to as a conservative accounting approach?