Bhd: a (Adapted from ACCA) 8. The following information is relevant to the impairment review of Auro Certain items of plant appeared to have suffered impairment as the inventories produced by the plant in question are being sold below cost. The carrying amount of plant is RM 580,000, and the fair value less costs of disposal is estimated at RM240,000. The estimated net cash flow of the plantis RM160,000 per annum for the next three years. The plant was previously revalued and the surplus on revaluation still appearing in the accounts is RM40,000. A discount rate of 10% per annum is to be used in any present value computation. Atro Bhd acquired a taxi business on 1 January 3 for RM460.000 The values of the assets of the taxi business at that date based on fair value less costs of disposal are: b. 1 Vehicles Taxi licence Trade receivables Cash Trade payables RM'000 240 60 20 207600-Lo) 100 Fr wet ASSE 100 (40) 380 Monetrynas On 1 February 23, three of the vehicles were stolen and fair value less costs of disposal of these vehicles was RM60,000. The insurance company refuses to indemnify Atro. As a result of this event, Atro wants to recognise an impairment loss of RM90.000 due to a decline in the value in use of the taxi operation. On 1 March x3, a rival taxi company commenced business in the same area and Atro anticipated that revenue from the taxi business will be reduced by 25% leading to a decline in the fair value less costs of disposal of RM310,000 and value in use of RM300,000The net selling price of the licence has fallen to RM50,000. Fair value less costs of disposal of the vehicles remains the same as at 1 January 23. Required: Discuss how Atro should treat the above impairment of assets in its financial statements at 1 February x3 and 1 March x3