Loco Bhd has two divisions, T and R, each of which is a separate cash-generating unit (CGU). As at 31 December 2017 the net assets of each division, were as follows:

T	R
RM	RM
Land at cost	284,000	116,000
Plant	450,000	290,000
Accumulated depreciation – Plant	(240,000)	(120,000)
Goodwill	46,000	32,000
Patent	210,000	255,000
Accumulated amortization – Patent	(20,000)	(102,000)
Cash	20,000	12,000
Inventory	120,000	80,000
Receivables	34,000	40,000
Net assets	904,000	603,000

Additional information as at 31 December 2017:

• T’s land had a fair value less costs to sell of RM302,000.
• R’s land had a fair value less costs to sell of RM110,000.
• Receivables were considered to be collectable.
• Inventories were measured at lower of cost and net realizable value.

Loco Bhd’s management conducted an impairment testing at 31 December 2017 and determined the recoverable amount of each CGU to be RM811,000 for T and RM520,000 for R.

Required:

For the financial year ended 31 December 2017:

1. State the main accounting standard applicable to the above situation. 
2. Analyse whether the CGU’s are impaired. Explain your answer. 
3. Calculate impairment loss for each CGU (if any). 
4. Allocate the impairment loss.