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Impairment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Impairment

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • January 13, 2018 at 1:06 pm #428866
    nari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello

    If a cash generating unit produces1000 units in year 1 which sells for $10 each but in year 2 produces 1000 units which sells for $7 each. Is that cgu impaired? Im wondering if the economic benefit refersbto the quantity produced or the revenue received from the production.

    January 13, 2018 at 1:09 pm #428868
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Not really is it impaired … for one thing, you didn’t tell me that the cgu is producing these units at a cost of 10 units per each $1 spent – maybe not, but simply because a profit margin falls does not necessarily indicate an impairment

    OK?

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  • The topic ‘Impairment’ is closed to new replies.

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