A Cash-Generating Unit (CGU) is the smallest identifiable group of assets that generates cash inflows largely independent of the cash inflows from other assets or groups of assets. It is a critical concept in impairment testing, ensuring that the carrying amount of assets does not exceed their recoverable amount. The identification of a cash-generating unit is essential for accurate financial reporting and asset valuation.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
