Identify the CGU

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A mining company owns a private railway to support its mining activities. This railway could be sold only for scrap value and does not generate cash inflows that are largely independent of the cash inflows from the other assets of the mine.

Required:

Question A. Would it be possible to determine the recoverable amount of the railway in terms of value in use, if possible the amount of value in use will be more than scrap or not.

Question B. Identify the CGU.

Reference no: EM132512811

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