Impairment

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January 13, 2018 at 1:06 pm #428866
nari
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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
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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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