On $1$ April $2021$ the construction of a fixed oil platform is completed and ready for use at a total cost of $$500$ million. The useful life of the rig is linked to the $25-$year exploration rights granted to the company. Due to the specific nature of the platform it is deemed to have no realisable value $($other than minimal scrap value$)$ at any stage throughout its life. All impairment tests are therefore based on value$-$in$-$use estimations.

On $30$ June $2023$ a rapid and significant decline in world oil prices has provided an indication that the asset may be impaired. On this date, the rig$$s value in use is estimated to be $$414$ million.

On $30$ June $2024$ a major contract was cancelled after one of the company$$s customers was declared bankrupt. This led directors to believe the value in use of the rig was now $$374$ million.

Required

Prepare the necessary journal entries to record adjustments for impairment on $30$ June $2023$ and $30$ June $2024.($LO$3$ and LO$4)$

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