Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › CGU and Operating Segments
- This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
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- November 5, 2014 at 11:37 am #207795
Hi Sir,
What is/are the Difference(s) between Cash generating Units and Operating Segments (IFRS 8) ?
November 7, 2014 at 7:34 am #208192A CGU could be just a small section of a production plant that is separable from the other parts of the plant / factory and that generates cash substantially without reference to any other section of the plant. Maybe a works canteen that provides food and snacks for the work force at a subsidised price
An operating segment is more in the nature of a division of a company or group and, at least in my mind, is identifiable by the product that it makes. For example, the car division would be distinct from the agricultural produce division which in turn is separate from the banking division
Ok?
November 7, 2014 at 10:42 am #208212Thank you sir, I understood quite well now, one more question sorry that it is irrelevant question not related to the subject, where were you? You had been offline for at least 5 days? Was there a problem? Hope you are fine now….. 🙂
November 7, 2014 at 11:22 am #208218Hi, no, no problem. Had to go to the UK for a meeting which was then cancelled. Still had other matters to sort out so time was not totally wasted.
Thanks for your concern 🙂
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