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CGU

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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May 30, 2021 at 5:09 am #622244
Jiya024
Member
- Topics: 168
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Dear Professor,
Can a product in itself be classified as a CGU?
If not then does that mean, if prices of a product go down then the CGU to which it belongs, its value will go down? Like its value in use will go down as the product the CGU generates will generate lesser cash flows due to its price reduction?
Many thanks:)
May 30, 2021 at 4:46 pm #622326
Stephen Widberg
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It depends whether it generates a stream of income which is independent of other cash generating units. I would hazard a guess that Apple may be able to separate iphones from ipads – but don’t quote me.
Either way the examiner will make it clear.
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