$($a$)$ Longolo Tech runs a business unit in Kafue town that has suffered a massive drop in income due to failure in its technology on $1$ January $2023.$ As a result, the following carrying amounts were recorded in the books immediately before the impairment test.

$\backslash$table$[[,$K'million$],[$Goodwill$,20],[$Technology$,5],[$Equipment$,10],[$Land$,50],[$Buildings$,30],[$Other net assets,$40]]$

The value in use of the unit is estimated at K$85$ million, and Longolo has received an offer of K$75$ million for the unit.

The technology is worthless, following its complete failure. Other net assets include inventory, receivables and payables. It is considered that the carrying amount of other net assets is a reasonable representation of its net realisable value.

Required:

In accordance with IAS $36$: impairment of assets, show the accounting treatment for the above transactions.

$(6$ marks$)$

$($b$)$ IAS $8$: Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors.

Required:

Describe the procedures an entity shall apply in selecting an accounting policy. $(4$ marks$)$

$($c$)$ Discuss the matters to consider in determining whether an investment in another company constitutes an associate status.

$(5$ marks$)$

$($d$)$ The IASB's Conceptual Framework identifies the fundamental qualitative characteristics of Financial Statements.

Required:

Explain how these fundamental qualitative characteristics apply to the treatment of intangible assets.

$(5$ marks$)$

$[$Total: $20$ Marks$]$