Broadsleisure plc hires boats out on the Norfolk Broads. The accounts for the year ended 30 September 2018 have been prepared but the finance director requires advice concerning the following issue:

Non-current assets include a boat that cost 100,000 when it was bought on 1 October 2016. The boat has been depreciated on a 20% reducing balance basis. At 30 September 2018, it could be sold for 42,000 although selling costs of 400 would be incurred.

The business could continue to use the boat for the next three years with estimated cashflows:

Year	Revenue	Costs
1	28,000	3,000
2	26,000	3,600
3	24,500	4,000

The company uses the following discount factors:

Year	Discount Factor
1	0.909
2	0.826
3	0.751

Required:

a) Calculate the carrying value of the boat at 30 September 2018.

b) Calculate the recoverable amount at 30 September 2018.

c) Explain how the boat should be valued under IAS 36.

d) How would any impairment loss be treated under IAS 36?

e) Suggest three possible reasons for impairment.