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IAS 36 IMPAIRMENT OF ASSETS
Under this IAS you should determine the Recoverable amount for the individual asset, if possible. [IAS 36.66]
If this is not possible, then you determine the recoverable amount for the cash-generating unit (CGU) to which that asset belongs. [IAS 36.66] The CGU is the smallest identifiable group of assets: [IAS 36.6]
* that generates cash inflows from continuing use, and
* that are largely independent of the cash inflows from other assets or groups of assets.
Identification of an asset's cash-generating unit involves judgement. If recoverable amount cannot be determined for an individual asset, an entity identifies the lowest aggregation of assets that generate largely independent cash inflows.
Example 1
A mining entity owns a private railway to support its mining activities. The railway is used to transport the ore mined and does not generate revenue the way passenger trains do. The private railway could be sold only for scrap value and it does not generate cash inflows that are largely independent of the cash inflows from the other assets of the mine.
It is not possible to estimate the recoverable amount of just the private railway by itself because its value in use cannot be determined and is probably different from scrap value. Therefore, the entity estimates the recoverable amount of the cash-generating unit to which the private railway belongs, i.e. the mine as a whole.
Example 2
A bus company provides services under contract with a municipality that requires minimum service on each of five separate routes. Assets devoted to each route and the cash flows from each route can be identified separately. One of the routes operates at a significant loss.
Because the entity does not have the option to curtail any one bus route (it MUST operate all five), the lowest level of identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets is the cash inflows generated by the five routes together. The cash-generating unit for each route is the bus company as a whole.
What else can I help you with?
What is cash payment upon delivery?
You pay cash when the unit/s are /is ready for delivery.
What is cash neutral?
Cash neutral refers to a financial situation where a company's cash inflows are equal to its cash outflows over a specific period, resulting in no net cash gain or loss. This status indicates that the organization is effectively managing its cash flow, maintaining balance without generating excess funds or incurring deficits. Being cash neutral can be a strategic goal for businesses, especially during periods of investment or growth, as it allows for stability while pursuing other financial objectives.
What is net cash inflows?
Net cash inflows refer to the total amount of cash that a business receives during a specific period, minus the total cash outflows for that same period. It represents the actual cash generated from operations, investments, and financing activities after accounting for all expenses and expenditures. Positive net cash inflows indicate that a company is generating more cash than it is spending, which is crucial for maintaining liquidity and funding growth. Conversely, negative net cash inflows can signal financial distress or the need for additional financing.
What is the national cash flow in a country?
National cash flow refers to the total amount of cash generated and spent within a country's economy over a specific period, typically measured annually. It includes all cash inflows, such as revenues from taxes, exports, and investments, as well as cash outflows, like government spending, imports, and social programs. A positive national cash flow indicates that a country is generating more cash than it is spending, which can be a sign of economic health, while a negative flow may suggest financial challenges. Understanding national cash flow is essential for assessing a country's economic stability and growth potential.
Why is interest expenses deducted in merger cash flow statements?
Interest expenses are deducted in merger cash flow statements because they represent the cost of financing the acquisition. By excluding these expenses, the cash flow statement can provide a clearer picture of the operational cash flows generated by the merged entity without the influence of financing decisions. This helps stakeholders assess the underlying performance and cash-generating ability of the combined operations. Ultimately, it allows for a more accurate valuation and evaluation of the merger's success.
Definition of unit commitment?
unit REFERS TO GENERATING UNIT AND COMMITMENT REFERS TO TURN IT ON
What is Production Opportunities?
The investment opportunities in productive (cash-generating) assets.
Can the cash generating process for a firm be continuous even though cash flow can be sporadic?
Yes. Rentals of skis is an example.
What is general unit?
IAS 36 IMPAIRMENT OF ASSETSUnder this IAS you should determine the Recoverable amount for the individual asset, if possible. [IAS 36.66]If this is not possible, then you determine the recoverable amount for the cash-generating unit (CGU) to which that asset belongs. [IAS 36.66] The CGU is the smallest identifiable group of assets: [IAS 36.6]* that generates cash inflows from continuing use, and* that are largely independent of the cash inflows from other assets or groups of assets.Identification of an asset's cash-generating unit involves judgement. If recoverable amount cannot be determined for an individual asset, an entity identifies the lowest aggregation of assets that generate largely independent cash inflows.Example 1A mining entity owns a private railway to support its mining activities. The railway is used to transport the ore mined and does not generate revenue the way passenger trains do. The private railway could be sold only for scrap value and it does not generate cash inflows that are largely independent of the cash inflows from the other assets of the mine.It is not possible to estimate the recoverable amount of just the private railway by itself because its value in use cannot be determined and is probably different from scrap value. Therefore, the entity estimates the recoverable amount of the cash-generating unit to which the private railway belongs, i.e. the mine as a whole.Example 2A bus company provides services under contract with a municipality that requires minimum service on each of five separate routes. Assets devoted to each route and the cash flows from each route can be identified separately. One of the routes operates at a significant loss.Because the entity does not have the option to curtail any one bus route (it MUST operate all five), the lowest level of identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets is the cash inflows generated by the five routes together. The cash-generating unit for each route is the bus company as a whole.
What is the difference between steam generating unit and boiler?
A steam generating unit generally is not a self contained unit and allows the steam by-product (water) to escape. A Boiler is generally a sealed system that recirculates the condensed water back to the heating chamber for re-use.
What is powered by a nuclear reactor?
A steam turbine/generating unit, or a naval vessel
What is unit transformer?
UniT transformer are step up transformer which is connected to generating house & step up voltage from 11/15kV votlage to 220/400kV voltage level as requirement or line design parameter. It is just like transformer but connected to unit of the generating house that's why we called it unit transformers.
What is cash payment upon delivery?
You pay cash when the unit/s are /is ready for delivery.
What unit can be called the brain of a computer?
Control unit .Because it controls or supervises the all the actions of computer by generating control signals .
How can one determine the cash flow of a business?
To determine the cash flow of a business, you can calculate it by subtracting the total cash outflows (expenses) from the total cash inflows (revenue). This will give you a clear picture of how much cash the business is generating or using over a specific period of time.
Cash money and g unit who is rich?
Definitely G-Unit. 50 Cent has more money then the whole Cash Money he has $ 440 Million (source http://knowyournetworth.com/50_cent_net_worth.html). GGG-UNIT!!!!!!
G unit and cash money who is the richest?
Cash money records has the most money in the industrie
