Entity B is a water and sewage company with a country wide water and sewage network. Although

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Entity B is a water and sewage company with a country wide water and sewage network. Although entity B is a listed company, the government is the controlling shareholder. 

Management have asked the government to allow a 3 per cent increase in prices in order to cover recent cost increases. This is a regulated business and any price rise is required to be authorised by the government. The government has authorised a price increase of only 0.5 per cent.

Is there any indication of impairment? Explain why.  

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