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A publisher owns 150 magazine titles; cash flows from direct sales and advertising are identifiable per title; titles managed by customer segment but management can abandon/replace individual titles. Identify the CGU.
AThe entire publishing company
BEach magazine TITLE — cash inflows are identifiable per title, and abandonment decisions are made at title level, indicating independence
CEach customer segment
DThe intangible-assets group
Answer & Solution
Correct answer: B. Each magazine TITLE — cash inflows are identifiable per title, and abandonment decisions are made at title level, indicating independence
Ind AS 36 illustration 14: even though advertising income is partly influenced by other titles in the customer segment, cash inflows are identifiable per title AND decisions to abandon are made at title level → individual title is the CGU.
Related questions
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