General Oil Limited (GOL)is in the oil and gas business and operates internationally. The company is public and is listed on the Toronto Stock Exchange (TSX). In the past two years, oil prices have been declining significantly. The company's Canadian operations are primarily located in Western Canada and consist of holdings in what are known as the "tar sands." Costs to extract the oil from these types of geological formations are fairly high. In some months in the past year, the cost to extract the oil has been higher than the market price. GOLis worried that oil prices will continue to decline and has therefore decided to write down its productive asset. To this end, the company needs to calculate the value in use and fair value less costs to sell. The higher value will be used to measure the impairment loss and to revalue the oil reserve.Security analysts that follow oil and gas companies understand that the lower oil and gas prices are negatively affecting share prices. The land otherwise has little market value.Adopt the role of GOLs Chief Accountant and discuss the options available for valuation, including how to measure for purposes of recording an impairment loss and the write down (W/D) of the Canadian Operations. Make sure to give reasons for your eventual choice of measurement.