Berry Pty Ltd Has Two Cash Generating Units

question 19

Multiple Choice

Berry Pty Ltd has two cash generating units. CGU A had a carrying amount of $1700 and value in use of $1750. CGU B has a carrying amount of $1900 and a value in use of $1800. The carrying amount of the head office assets is $1400. CGU A and B utilise the head office services equally. The impairment loss for CGU A is:

• A) $0.
• B) $650.
• C) $800.
• D) $1350.

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Definitions:

Risky Shift

A phenomenon where groups tend to make riskier decisions together than individuals would when making decisions alone.

Individual Decision

A decision-making process where a single person makes a choice based on their judgment and information available to them.

Group Decision Making

The process by which multiple individuals come together to make a decision collectively, often involving discussion and negotiation.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity within a group leads to an irrational or dysfunctional decision-making outcome.