alleryStart learning →A cash generating unit is the smallest identifiable group of assets that:
ABelongs to a single legal entity
BShows a profit after depreciation
CHas largely independent cash inflows
DIs situated at one geographical site
Answer & Solution
Correct answer: C. Has largely independent cash inflows
The test for a cash generating unit is independence of cash inflows from continuing use, not legal form, profit or location.
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An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: