$($b$)$ There are specific assets on which the company wishes to seek advice. The

company holds certain non$-$current assets, which are in a development area and

carried at cost less depreciation. These assets costs RM$3$ million on $1$ June $2017$

and are depreciated on the straight$-$line basis over their useful life of five years.

An impairment review was carried out on $31$ May $2018$ and the projected cash

flows relating to these assets were as follows:

The company used a discount rate of $5\%.$ At $30$ November $2018,$ the directors

used the same cash flow projections and noticed that the resultant value in use

was above the carrying amount of the assets and wished to reverse any

impairment loss calculated at $31$ May $2018.$ The government has indicated that itmay compensate the company for any loss in value of the assets up to $20\%$ of the

impairment loss.

HSR Bhd$.$ holds a non$-$current asset, which was purchased for RM$10$ million on

$1$ December $2015$ with an expected useful life of $10$ years. On $1$ December $2017,$

it was revalued to RM$8\mathrm{.}8$ million. At $30$ November $2018,$ the asset was reviewed

for impairment and written down to its recoverable amount of RM$5\mathrm{.}5$ million.

HSR Bhd$.$ committed itself at the beginning of the financial year to selling a

property that is being under$-$utilised following the economic downturn. As a

result of the economic downturn, the property was not sold by the end of the year.

The asset was actively marketed but there were no reasonable offers to purchase

the asset. HSR Bhd$.$ is hoping that the economic downturn will change in the

future and therefore has not reduced the price of the asset.

Required:

Discuss with suitable computations, how to account for any potential impairment

of the above non$-$current assets in the financial statements for the year ended $30$

November $2018.$