Question 3 YGL Berhad specialises in the communications sector with three main Cash Generating Units (CGUS). Goodwill was a significant component of total assets. In the year ended 31 December 2020, YGL has performed an impairment test of the CGUS. The cash flow projections were based on the most recent financial budgets approved by management. The realised cash flows for the CGUs were negative in 2020 and far below budgeted cash flows for that period. The directors had significantly raised cash flow forecasts for 2021 with little justification. The projected cash flows were calculated by adding back depreciation charges to the budgeted result for the period with expected changes in working capital and capital expenditure not taken into account. Required: Discuss whether the action taken by the directors is appropriate. [15 marks]