On 1 December 20X2, Suntory acquired a trademark, Golfo, for a line of golf clothing for $3 million. Initially, Suntory expected to continue marketing and receiving cash flows from the Golfo product line indefinitely. However, because of the difficulty in determining its useful life, Suntory decided to amortize the trademark over a ten-year life, using the straight line method. In December 20X5, a competitor unexpectedly revealed a technological breakthrough which is expected to result in a product which, when launched, will significantly reduce the demand for the Golfo product line. The demand for the Golfo product line is expected to remain high until May 20X8, when the competitor is expected to launch its new product. At 30 November 20X6, the end of the financial year, Suntory assessed the recoverable amount of the trademark at $500,000 and intends to continue manufacturing Golfo products until 31 May 20X8.

Required: 

The directors of Suntory require advice as to how to deal with the trademark in the financial statements for the year ended 30 November 20X6.