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Hi,
can I pls confirm I understand this correctly.
Assuming a company acquired 10 stores in various locations, with their performances separately reviewed but key policies such as pricing, marketing and human resources are centrally decided.
To carry out an impairment review, is it right to treat each 10 stores as a CGU because although centrally managed, their income stream is independent of one another?
Thank you.
I can see no reason why you wouldn’t treat them as separate cgus
Remember, a cgu is the SMALLEST group of assets that generates profits independently from any other asset or group of assets
Ok?
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