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Hello Open tuition,
I need help to distinguish between these 4 terms, if you can also provide examples for each 🙂
i) Discontinued operation
ii) CGU
iii) Operating segment
iv) SubsidiaryI understand that these terms have been defined in their respective IFRSs. However, as a student with no work experience, I really find it challenging to distinguish between them. For example, a subsidiary can be a discontinued operation as well as a CGU as well as an operating segment!
Thank you.Yes …. a sub can be all of the above, and often would be.
Discontinuance – major area of business
CGU – independent stream of income
Sub – an entity that you control
Operating segment – part of a business that the boss looks at on its own rather than grouped with other parts.In the exam, decide what’s being tested and then quote the relevant definition.
Best I can do.
🙂
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