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Hi mike
Related to impairment in Boston. It mentioned that Boston using forecast growth rate rather than factory growth rate to calculate value in use.
But in question it only mentioned Boston used growth rate attributable to the company as a whole to estimate value in use. Thus why auditor claim inapproratite estimation in value in use ? It does not mention Boston used forecast growth rate.
Thanks
I believe that the point at issue is the use of the growth rate applicable to the company as a whole whereas the appropriate data was the growth rate specific to that particular cash generating unit
So that matter of concern is not the use of “forecast” figures. It’s more a matter of using “company as a whole” rather than figures specific to that CGU
OK?
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