Document ID: chunk:federal_register_of_legislation:F2023C00180:front:0:p45
Version: federal_register_of_legislation:F2023C00180
Segment Type: other
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Character Range: 114580–119138

a group of entities comprising the parent and each of the entities that it controls.

Appendix E
Australian simplified disclosures for Tier 2 entities
This appendix is an integral part of the Standard.
AusE1 Paragraphs 126–137 do not apply to entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.

Illustrative examples
Contents
          from paragraph
          1 IDENTIFICATION OF CASH-GENERATING UNITS                                                                                              IE1
            A  Retail store chain                                                                                                                IE1
            B  Plant for an intermediate step in a production process                                                                            IE5
            C  Single product entity                                                                                                             IE11
            D  Magazine titles                                                                                                                   IE17
            E  Building half-rented to others and half-occupied for own use                                                                      IE20
            2 CALCULATION OF VALUE IN USE AND RECOGNITION OF AN IMPAIRMENT LOSS                                                                  IE23
          3 DEFERRED TAX EFFECTS                                                                                                                 IE33
            A  Deferred tax effects of the recognition of an impairment loss                                                                     IE33
            B  Recognition of an impairment loss creates a deferred tax asset                                                                    IE36
          4 Reversal of an impairment loss                                                                                                       IE38
          5 Treatment of a future restructuring                                                                                                  IE44
          6 Treatment of future costs                                                                                                            IE54
            7 Impairment testing cash-generating units with goodwill and non-controlling interests                                               IE62
              7A Non-controlling interests measured initially as a proportionate share of the net identifiable assets                            IE62
              7B Non-controlling interests measured initially at fair value and the related subsidiary is a stand-alone cash-generating unit     IE68A
              7C Non-controlling interests measured initially at fair value and the related subsidiary is part of a larger cash-generating unit  IE68F
          8 ALLOCATION OF CORPORATE ASSETS                                                                                                       IE69
            9 DISCLOSURES ABOUT CASH-GENERATING UNITS WITH GOODWILL OR INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES                            IE80

Illustrative examples
These examples accompany, but are not part of, AASB 136. All the examples assume that the entities concerned have no transactions other than those described. In the examples monetary amounts are denominated in 'currency units (CU)'.

Example 1  Identification of cash-generating units
The purpose of this example is:
(a) to indicate how cash-generating units are identified in various situations; and
(b) to highlight certain factors that an entity may consider in identifying the cash-generating unit to which an asset belongs.

A  Retail store chain

Background
IE1 Store X belongs to a retail store chain M. X makes all its retail purchases through M's purchasing centre. Pricing, marketing, advertising and human resources policies (except for hiring X's cashiers and sales staff) are decided by M. M also owns five other stores in the same city as X (although in different neighbourhoods) and 20 other stores in other cities. All stores are managed in the same way as X. X and four other stores were purchased five years ago and goodwill was recognised.
What is the cash-generating unit for X (X's cash-generating unit)?

Analysis
IE2 In identifying X's cash-generating unit, an entity