AB acquired a plant on 1 january 2003 for RM400,000 and expected to use it for ten years. On 31 December 2004, the fair value of the plant was RM440,000 and remaining life was eight years. AB uses the revaluation model to measure the value of non-current assets.

On 31 December 2006, there were indications that the asset could be impaired. The value in use was calculated to be RM300,000 and fair value less costs to sell was RM280,00.

Annual transfers were made from the revaluation reserve to retained earning.

Required: Disscuss the accouting treatment in years 2006 and 2007