Shelly’s Cruises

1 mark per matter, 1 mark per specific procedure

Matters:

– Materiality
 – Impairment of assets (NOT brand)
 – Cash generating unit
 – Subjective elements in impairment calculations
 – Ref IAS 36 (½ mark only)

Evidence:

– Review management impairment test (max 2 marks if detailed)
 – Discuss future strategy re Shelly’s Cruises
 – Review post year-end performance/bookings in advance

Max marks 7