Six areas in which different accounting estimates are followed by companies

Following are the examples of the areas in which different accounting policies may be adopted by different enterprises:

(i) Methods of depreciation, depletion and amortization.

• depreciation in case of Tangible assets
• depletion  in case of Natural assets, i.e gas, mine etc.
• amortization in case of intangible assets, i.e goodwill, patent etc.

(ii) Treatment of expenditure during construction.
(iii) Valuation of inventories.

• Last In First Out
• First In First Out
• Average
• Lower of Cost or Market 

(iv) Treatment of goodwill.
(v) Valuation of investments.
(vi) Valuation of fixed assets.