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10 years, whereas the estimated remaining useful lives of Railway station and Railway track’s cash-generating
units are 20 years.
(Rs. in crore)

Particulars Train Railway station Railway tracks Total
Carrying amount (a) 1,500 2,250 3,300 7,050
Useful life 10 years 20 years 20 years -
Weight based on useful life 1 2 2 -
Carrying amount 1,500 4,500 6,600 12,600
(after assigning weight)
Pro-rata allocation of Land 12% 36% 52% 100%
(1,500/12,600) (4,500/12,600) (6,600/12,600)
Allocation of carrying amount of 216 648 936 1,800
Land (b)
Carrying amount (after 1,716 2,898 4,236 8,850
allocation of Land) (a + b)

Calculation of impairment loss
Step I: Impairment losses for individual cash-generating units and its allocation:
(a) Impairment loss of each cash-generating units

(Rs. in crore)
Particulars Train Railway station Railway tracks
Carrying amount (after allocation of land) 1,716 2,898 4,236
Recoverable amount 1,800 2,700 4,200
Impairment loss - 198 36

(b) Allocation of the impairment loss

(Rs in crore)
Allocation to Railway Railway
station tracks
Land 44 [198 x (648 / 8 [36 x (936 /
2,898)] 4,236)]
Other assets in cash- [198 x 2,250 / [36 x (3,300/
generating units 154 2,898)] 28 4,236)]
Impairment loss 198 36

Step II: Impairment losses for the larger cash-generating unit, i.e., Pacific Ocean Railway Ltd. as a whole
(Rs. in crore)
Particulars Train Railway Railway Land Building Pacific Ocean
station tracks Railway Ltd.
Carrying amount 1,500 2,250 3,300 1,800 600 9,450

Impairment loss (Step I) - (154) (28) (52) - (234)
Carrying amount (after Step I) 1,500 2,096 3,272 1,748 600 9,216
Recoverable amount 9,600
Impairment loss for the ‘larger’ cash-generating unit Nil

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