- This topic has 2 replies, 2 voices, and was last updated 9 years ago by
.
-
Posts
-
Dear Mike,
I didn’t quite understand the meaning of the CGU. I will appreciate if you could help me understand its meaning, if possible with a relevant example.
Thanks.
Also, why are we not to include the financing activities and income tax receipts & payments in determining the value in use of the asset? aren’t these relevant costs directly attributable to the asset?
“I didn’t quite understand the meaning of the CGU” – there are very few assets that, on their own, generate a flow of funds. It is invariably the case that an asset will need to be considered together with other assets in order to find a cgu (cgus are defined in the course notes!)
“Also, why are we not to include the financing activities and income tax receipts & payments in determining the value in use of the asset? aren’t these relevant costs directly attributable to the asset?” – we need some sort of rule in order to benchmark what should and what should not be considered in determining the value in use of an asset
So, exclude financing activities and tax implications!
- You must be logged in to reply to this topic.