Sputnik Limited (SL) produces various products through its three production facilities located

at Kohat, Larkana and Sahiwal. Each facility is considered as a separate cash-generating unit
(CGU).
In April 2021, several cases of SL's products were reported and this badly affected all the
products and consequently their sales were reduced significantly. Therefore, SL conducted
impairment test of all CGUs as on 30th June 2021.
Following information was made available on 30 June 2021:
(i) Assets of CGUs:
Kohat Larkana Sahiwal
-------------- Rs. in million --------------
Carrying amount 484 300 380
Value in use 464 346 490
Fair value less costs to sell 452 330 505
-------------- No. of years --------------
Remaining useful life 10 8 6
(ii) Corporate assets:
Carrying amount Remaining useful life
Rs. in million Years
Head office 254 15
Research centre 80 5
(iii) The operations of SL are conducted from the head office. Research centre supports Kohat
and Larkana facilities only.
(iv) The relative carrying amounts of CGUs are reasonable indication of the proportion
of the corporate assets devoted to each CGU.
(i) SL does not have any intention to sell any CGU in near future.
Required:
Compute carrying amounts of each CGU and corporate assets after incorporating impairment
losses if any as on 30th June 2021.

(10)