A division of GHI Ltd has the following non-current assets, which are stated at their carrying amount at 31 March 2023. Because these assets are used to produce a specific product, it is possible to identify the cash flows from their use. The management of GHI Ltd believes that the value of these assets may have become impaired, because a major competitor has developed a superior version of the same product. As a result, sales are expected to fall. The following additional information is relevant: 1. The land and buildings are carried at valuation. $120 million of revaluation surplus exists as at 31 March 2023. All other non-current assets are carried at historical cost. 2. The goodwill does not have a market value. It is estimated that the land and buildings could be sold for $540 million and plant and machinery could be sold for $100 million, net of direct selling costs. 3. The value in use of the assets has been calculated at $770 million. Required i. Calculate the impairment losses that will be recognized in accounts of GHI Ltd. (Asirast) ii. Explain how this loss will be treated in financial statements for the year ended 31 March 2023