Hax GmbH is a multinational automotive supplier located in Stuttgart. Since 2010, resulting from the decision of the company to issue public debt, the company is accounting according to IFRS. Hax has established three factories in Stuttgart, all located along the river in the eastern part of the city to facilitate just-in-time delivery to the company’s key customers. The corporate headquarter is located in the city centre of Stuttgart. Essentially, Hax is organized in three divisions: radiators, filters and compressors. Recently, Hax’s reputation was jeopardized by several unfavourable media reports about the water pollution close to the company’s factories. Additionally, the city of Stuttgart is pressuring Hax to improve its environmental performance indicators due to the EU rules on inner-urban air quality, to reduce fine-particle and noise pollution. Consequentially, at the beginning of 2015 Hax established a Corporate Social Responsibility (CSR) centre that communicates with all divisions, collects data and creates reports for the yearly CSR reporting. It is expected that all three divisions will use the services of the headquarter to the same extent. The headquarter and the CSR centre do not generate external cash-flows, but each production division has to pay an internal service fee to the headquarter. However, because the CSR centre has been established recently, it is not possible at the end of the fiscal year to reasonably allocate the assets of the CSR centre to the single divisions. In December 2015, a renowned newspaper publishes an article about further infringements of Hax against the working hours act. Under this circumstances, one of the leading customers is not willing to pursue a business relationship with Hax any longer. Due to the loss of one of its biggest customers, Hax is facing serious economic problems. That is, the company thinks about performing an impairment test according to IAS 36 at the end of 2015. Mr Christensen, the accountant of Hax, knows that he has to determine the Cash



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