Stay Dry Raincoats uses three different machines (A,B,and C)to manufacture raincoats.These machines are considered to be a cash generating unit (CGU).Due to climate change and changes in consumer preferences,demand for raincoats has declined in recent years.The following information is relevant to the evaluation of impairment.

Required:
Determine the amount of impairment loss that should be recorded for the cash generating unit and for each of the three machines.

Question

Stay Dry Raincoats uses three different machines (A,B,and C)to manufacture raincoats.These machines are considered to be a cash generating unit (CGU).Due to climate change and changes in consumer preferences,demand for raincoats has declined in recent years.The following information is relevant to the evaluation of impairment.
  
Required:
Determine the amount of impairment loss that should be recorded for the cash generating unit and for each of the three machines.

Quizplus · Accepted Answer

The Answer of Stay Dry Raincoats uses three different machines (A,B,and C)to manufacture raincoats.These machines are considered to be a cash generating unit (CGU).Due to climate change and changes in consumer preferences,demand for raincoats has declined in recent years.The following information is relevant to the evaluation of impairment.
  
Required:
Determine the amount of impairment loss that should be recorded for the cash generating unit and for each of the three machines.

Stay Dry Raincoats Uses Three Different Machines (A,B,and C)to Manufacture