(b) Jelita Mahsuri Bhd has a building in Pendang which it rents out. It accounts the asset as an investment property using the cost model. The building was acquired on 1 January 2010 at a cost of RM10 million and the estimated useful life was determined to 40 years. Due to ecological changes, the area became prone to floods reducing the building's rental value. An impairment review was conducted on 31 December 2017 and it was determined that the fair value of the building has declined to RM6 million. The present value of future rental cash flows was estimated to be RM6.4 million. The remaining useful life of the building also declined to 20 years. In 2019, the local government finally completed the drainage project which is aimed to control flooding incidents in Pendang. Consequently, the rental value of the building began to improve. On 30 June 2020, the present value of future rental cash flows was reassessed to be RM6 million and the fair value to be RM5.8 million. Required: With reference to the above: 1. State the main standard applicable to the above situation. ii. Based on the accounting standard: (a) Explain the meaning of recoverable amount'. (b) Explain the meaning of 'impairment loss'. iii. Calculate the carrying amount of the building at: (a) 31 December 2017. (b) 30 June 2020