In accordance with IAS 36, Royal Docks carried out various impairment reviews. Cash generating unit D, a magazine publishing business to which goodwill has been allocated, was tested for impairment and was deemed not to be impaired. Royal Docks has produced the following disclosure note for inclusion in the financial statements:

The recoverable amount of cash generating unit D has been determined as its value in use. The calculation of value in use was based on cash flow projections that were approved by management. Thea average discount rate used by Royal Docks during the year was 10%. The future cash flow of unit D beyond the budgeted period were extrapolated using an 8 per cent growth rate. Management believes that any reasonably possible change in the key assumptions on which Ds recoverable amount is based would not cause Ds carrying amount to exceed its recoverable amount.

you are required:

(iii) Discuss why the information contained in this disclosure may be of limited use to the users of Royal Dockss financial statements. You should assume that the users of the financial statements have a reasonable knowledge of strategic business reporting. (8 marks)