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Impairment of Assets IJ Development was established in 1983 with the objective of producing high-quality concrete engineering products to meet the needs of rapidly developing countries, such as Malaysia and other ASEAN countries. In May 1991, the company assumed the name of IJ Development Berhad when it was converted into a public listed company. In January 1992, the company was listed on the Kuala Lumpur Stock Exchange (KLSE) Since its founding, the company has been constantly striving for product excellence and has the reputation of being one of the market leaders in this region on prestressed spun concrete piles and poles. The company currently exports substantial quantities of its products to the overseas markets, covering Singapore, Brunei, Indonesia, Myanmar and the Gulf region. The five main divisions of the company are as follows: a) Engineering Design and Research b) Sales and Technical Services c) Planning and Production d) Quality Assurance and Control e) Financial and Human Resources Management IJ Development Berhad has just acquired Luna Ltd. For RM500 million in January 2018. The following assets were acquired at their fair value, including cash, receiveables and inventory : Property, plant and equipment (PPE) RM150) million Quarry Development RM40 million Goodwill RM100 million Property, plant and equipment are depreciated over a 15-year useful life on a straight-line basis with no residual value. The Quarry Development is associated with one of the largest operators in Malaysia, and managed by the company. The quarries are strategically located in Selangor, Negeri Sembilan and Pahang. The company's annual capacity exceeds 7 million tonnes of granite and industrial-use stones. It has the distinction of being the first quarry operator in Malaysia to be awarded the ISO 9002 cerificate for quality management. The quarry development is estimated to have a 10-year useful life with no residual value. It is amortized using the straight-line method. Upon acquiring Luna Ltd., the assets comprised of cash- generating unit to which the goodwill is allocated. Value in Use Fair Value Less Cost to Sell Property, plant and equipment|RM50 million RM60 million (PPE) Quarry Development RM15 million RM20 million Recoverable amount of Luna Carrying amount of Luna Ltd. Ltd.'s nett assets Goodwill RM420 million RM390 million Required : 1. Identify the carrying amount of PPE at the end of 2020. 2. When should PPE, Quarry Development and Goodwill be tested for impairment? Explain. What is the amount of impairment loss to be identified (if any) for the assets abov