a) XYZ Co acquired Machine A that performs machining operations on parts that are sold to customers some years ago. Machine A has a book value (carrying value) of $150,000 on 31 December 2017. Upon analysis, as at 31 December 2017, the following facts about future expected cash inflows and outflows of Machine A are as follow: Value in use (VIU) is determined by discounting the above cash flows at a hurdle rate of 5%. Required: i) Determine the Value in use of Machine A as at 31 December 2017 and determine the impairment loss of the Machine A if any. ii) Show the extract of XYZ Co's income statement for the year ended 31 December 2017. iii) Show the extract of XYZ Co's Statement of Financial Position as at 31 December 2017 b) The main objective of NZ IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its balance sheet at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and NZ IAS 36 requires an impairment loss to be recognized. Required: (i) Define an impairment loss explaining the relevance of fair value less costs to sell and value in use; and state how frequently assets should be tested for impairment; Note: your answer should NOT describe the possible indicators of impairment. (ii) Explain how an impairment loss is accounted for after it has been calculated. a) XYZ Co acquired Machine A that performs machining operations on parts that are sold to customers some years ago. Machine A has a book value (carrying value) of $150,000 on 31 December 2017. Upon analysis, as at 31 December 2017, the following facts about future expected cash inflows and outflows of Machine A are as follow: Value in use (VIU) is determined by discounting the above cash flows at a hurdle rate of 5%. Required: i) Determine the Value in use of Machine A as at 31 December 2017 and determine the impairment loss of the Machine A if any. ii) Show the extract of XYZ Co's income statement for the year ended 31 December 2017. iii) Show the extract of XYZ Co's Statement of Financial Position as at 31 December 2017 b) The main objective of NZ IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its balance sheet at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and NZ IAS 36 requires an impairment loss to be recognized. Required: (i) Define an impairment loss explaining the relevance of fair value less costs to sell and value in use; and state how frequently assets should be tested for impairment; Note: your answer should NOT describe the possible indicators of impairment. (ii) Explain how an impairment loss is accounted for after it has been calculated