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JNRBhdacquiredanoildeliverytruckon1January2016atacostofRM270,000.Thetruckwasexpected tohaveanestimatedusefullifeofnineyearswithzeroresidualvalue.Themanagementdeterminedthat straight-linedepreciationisappropriate.On31December2016,thetruckhasacarryingamountof RM240,000.In2017,becauseofasharpdownturnindemandforfueloil,JNRBhddramaticallydecreaseditsuseofthe truck.Consequently,on31December2017,themanagementre-estimatesthetruck'sremainingusefullife tofiveyears, duringwhichthe truck is expectedtoprovidethefollowing netcashflows: Year 2018 RM60,000 2019 RM55000 2020 RM 50000 2021 RM35000 2022 RM 15,000 Theappropriateratetodiscountthesefuturecashflowstotheirrisk-adjustedpresentvalueis10%peryear.

JNRBhdacquiredanoildeliverytruckon1January2016atacostofRM270,000.Thetruckwasexpected tohaveanestimatedusefullifeofnineyearswithzeroresidualvalue.Themanagementdeterminedthat straight-linedepreciationisappropriate.On31December2016,thetruckhasacarryingamountof RM240,000.In2017,becauseofasharpdownturnindemandforfueloil,JNRBhddramaticallydecreaseditsuseofthe truck.Consequently,on31December2017,themanagementre-estimatesthetruck'sremainingusefullife tofiveyears, duringwhichthe truck is expectedtoprovidethefollowing netcashflows:

Year

2018 RM60,000

2019 RM55000

2020 RM 50000

2021 RM35000

2022 RM 15,000 Theappropriateratetodiscountthesefuturecashflowstotheirrisk-adjustedpresentvalueis10%peryear. On31December2018,themarketpriceforthetruckisRM154,000.Ifthetruckwassold,licenseandtitle feesof RM4,000 wouldbepaid.By31December2019,themarketforfueloilhasrecoveredandthereisimproveddemandfortheservices providedbyoildeliverytrucks.Managementestimatesthatthetruck'sremainingusefullifeisfouryears, through which thetruck isexpected to provide thefollowingnetcashflows:Year 2020 RM55000

2021 RM40000

2022 RM25000

2023 RM10,000 Theappropriateratetodiscountthesefuturecashflowstotheirrisk-adjustedpresentvalueis8%peryear. On31December2019,themarketpriceforJNRBhd'struckisRM113,000.Ifthetruckwassold,license and title fees ofRM3,000 would be paid.

Required: (a)Determinewhethertheoildeliverytruckhasbeenimpairedon31December2017inaccordancewith theMFRS 136ImpairmentofAssets. Preparethejournalentries,if required,to record the impairment.

(b)Discusswhetherthereisanyreversalofimpairmentforthetruckon31December2019basedon MFRS 136.Preparethejournalentries,if required, to record thereversalof impairment.

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