Write a report to the accountant of Fresh Milk Ltd, including the following: 1. Define a CGU.
Question:
1. Define a CGU.
2. Explain why impairment testing requires the use of CGUs, rather than being based on single assets.
3. Explain the factors that the accountant should consider in determining the CGUs for Fresh Milk Ltd.
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1 A cashgenerating unit is the smallest identifiable group of assets that generates cash flows that are largely independent of the cash inflows from o...View the full answer
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Related Book For 
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
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