IAS 36 defines 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 as a:
A)class of assets.
B)asset portfolio.
C)value in use asset group.
D)cash-generating unit.

Question

Quizplus · Accepted Answer

The definition given in the question matches with the definition of a cash-generating unit (CGU) as per IAS 36. Therefore, the correct choice is option D - cash-generating unit. Options A, B, and C do not match the definition of 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.

IAS 36 Defines the Smallest Identifiable Group of Assets That