Principies borting Standard 136 July 2016. K. (2012). Intermediate Current interest rate Required: Identify the necessary accounting treatment for the Bio-oil Division by Minyak Corp. 3 IJ Corp. is a company that provides apparel for motorbikes and other two-wheeled vehicle activities. This includes safety riding jackets, gloves, riding pants and boots. IJ Corp, started their business in 2000 after acquiring a leasehold land in Shah Alam and building a plant to manufacture this line of clothing. The plant has been identified as a 4th edn., Singapore: cash-generating unit to IJ Corp. All the relevant assets of the plant, such as the offices canteen, factory, machinery and equipment, are depreciated constantly over time. The total initial cost is RM40 million, with 50 years of lease period. At the end of 2014, it is found that the carrying amount of the assets that are included in the cash-generating unit is RM22,000,000. IJ Corp.'s directors have decided to expand and restructure the whole plant with AB Contractors at an estimated cost of RM5 million the year after. IJ Corp. is expected to benefit significantly from this expansion project. It is calculated that cost of capital is to be estimated at 11%. When testing for impairment, it is found that the fair value of the plant is RM17 million. The following future net cash inflows have been calculated by the analyst, conveying two different scenarios: (1) with, and (2) without, the expansion project. g 4 pr ne AS IJ cor Lu pro leac Year Without Expansion With Expansion The (R 00) (RM'000) 1 to ti 2,500 2,500 Mya 2 2,700 2,800 3 2,900 3,000 4 3,000 3,300 5 3,200 3,500 6 3,000 3,900 (B 7 3,300 4,200 (c 8 3,500 4,500 (d 3,900 5,000 10 4,000 (e 5,500 Required: IJ million fair val (a) Explain what will be the relevant impairment test to be performed for the year 2014. (b) Assuming that IJ Corp. will implement the restructuring plan by the end of 2015, how would this information affect the impairment test