(a) AASB 136 requires that the carrying amount of non-current assets should not be carried at more than their recoverable amount.

Required:

(i) Briefly discuss the above statement in your own words. (2 Marks)

(ii) During this Covid-19 pandemic, most of the companies will write down their non-current assets in particular Property, Plant and Equipment which will result in massive impairment loss. Do you think this impairment loss will have an impact on companys performance. (2 Marks)