Double counted losses At the end of 2013, an entity with a single CGU is carrying out an impairment review.…
Identification of cash-generating units – grouping of assets Example A – A tour operator’s hotels A tour operator owns three…
Reversal of impairment losses At the beginning of 2009 an entity acquires an asset with a useful life of 10…
Identification of cash-generating units – internally-used products Example A – Plant for an Intermediate Step in a Production Process A…
Allocation of corporate assets An entity comprises three CGUs and a headquarters building. The carrying amount of the headquarters building…
BT Group plc (2008) Operating and financial review Technological advances Our continued success depends on our ability to exploit new…
Calculating a discount rate This example is based on determining the WACC for a listed company with a similar risk…
Different project risks and CGUs An aircraft manufacturer makes both civilian and military aircraft. The risks for both sectors are…
Effect of entity default risk on its WACC The formula for calculating the (post tax) WACC, as given in above,…
Testing for impairment of goodwill allocated in the period after acquisition after the annual impairment testing date Entity A prepares…