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In the bpp revision question 13 Groom part c
Shelley’s cruises brand is not recognised as an intangible asset as it is internally generated which I understand but then the answer goes on to discuss the brand needs to be impaired.
Does this mean the assets for this brand are recognised as a cash generated unit in the assets register and them are impaired together.
Thank you for all your help
I do not have BPP’s version of the answer if that differs to the published answer. The published answer states that poor performance is an indicator of impairment of the cruise holiday business. It doesn’t matter that the goodwill is not recognised the cash GENERATING (note spelling) unit of OTHER assets associated with Shelly’s Cruises (i.e. those that are recognised) must be tested for impairment.
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