Under IFRS,the smallest identifiable group of assets that provides cash inflows is called a ________.
A)reporting unit
B)operating unit
C)cash-providing unit
D)cash-generating unit

Question

Quizplus · Accepted Answer

Under IFRS, the smallest identifiable group of assets that provides cash inflows is called a cash-generating unit (CGU). This unit is used for impairment testing and is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The other options such as reporting unit, operating unit, and cash-providing unit are not defined under IFRS and do not have the same implications as a CGU.

Under IFRS,the Smallest Identifiable Group of Assets That Provides Cash