Question 1 - Impairment Losses The information that follows relates to equipment owned by Gaurav Limited at December 31, 2017: Cost $10,000,000 Accumulated depreciation to date 2,000,000 Expected future net cash flows (undiscounted) 7,000,000 Expected future net cash flows (discounted, value in use) 6,350,000 Fair Value 6,200,000 Costs to sell 50,000 Assume that Gaurav will continue to use this asset in the future. As at December 31, 2017, the equipment has a remaining useful life of four years. Gaurav uses the straight-line method of depreciation. Instructions (a) Assume that Gaurav is a public company that follows IFRS. 1. Prepare the journal entry at December 31, 2017, to record asset impairment, if any. 2. Prepare the journal entry to record depreciation expense for 2018. 3. The equipment's fair value at December 31, 2018, is $6.5 million. Prepare the journal entry, if any, to record the increase in fair value. NOTE-the JE answer is long and complex; you may instead opt to understand the theory of this part instead. (b) Repeat the requirements in (a) above assuming that Gaurav is a private company that follows ASPE. (c) Discuss the differences between ASPE & IFRS. Which method is preferred