North Ltd produces a single product and owns boiler plants A, B and C. Each boiler plant is located on a different continent. A produces a component that is assembled in either B or C. The combined capacity of B and C is not fully utilized. Norths products are sold worldwide from either B or C. For example B s production can be on Cs continent if the products can be delivered faster from B than from C. Utilisation levels of B and C depend on allocation of sales between the two sites.

Case 1 There is an active market for As products Case 2 There is no active market for As products.

Required: 1. For each case identify Cash generating units for A,B and C. (10 marks)

2. List the indicators considered in assessing whether assets are likely to be impaired. (5 marks)