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Briefly outline whether you agree with the accountant

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Question - Nasoso Ltd operates two hotels in the Nadi area. Hotel A1 provides up-market accommodation in beachside bures while Hotel B2 provides budget accommodation in a 3-storey property. The two hotels share the same entrance and lobby. Each hotel has its own business licenses and staff. The two hotels are managed by one team of senior managers. Marketing and reservations are handled jointly and guests from both hotels can dine in any of the restaurants in either property. The accountant claimsthat each hotel is a separate cash generating unit (CGU) while the CEO argues that the entire company is a CGU.

Briefly outline whether you agree with the accountant or the CEO.

Reference no: EM132567448

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