AFT Pharmaceuticals is a New Zealand pharmaceuticals company, listed on the New Zealand Exchange. Its ticker symbol is AFT. Its 2019 annual report is uploaded.

Required:

4(u)

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Indefinite useful life assets are tested for impairment annually and whenever there are indicators of impairment while finite useful life assets are tested only when there are indicators of impairment.

Question 1: Refer to accounting policy note 4(u) Impairment of non-financial assets. Write down an improved accounting policy note for this item