a.The following data refers to assets in company XYZ, determine whether impairment has

	occurred or not and identify the amount to be recognized.				(10 marks)
		Carrying amount	Fair value less cost to sell	Value in use
	Item 1	119,000	121,000		114,000
	Item 2	237,000	207,000		205,000
	Item 3	115,000	117,000		123,000
	Item 4	83,000	75,000		79,000
	Item 5	31,000	26,000		-
b.	Explain the term capitalization of borrowing cost.				(5 marks)
c.	Identify under what circumstances can borrowing cost be recognized.				(5 marks)