Question 2 Goaso Timbers Ltd (GTL) produces and exports lumber and planks. It was a plant which has a book value of GH1,900,000 as at 1 January 2017. The government of Ghana passes a legislation that restricts the exportation of lumber. Consequently, GTL has to reduce production significantly, about 45%. Cash flow forecast for the next four years included in the budget submitted for muragement approval in January 2017 shows the following Year Cash flows (GHC) 2017 550,000 2018 500,000 2019 300,000 2020 700,000 The cash flows forecast for 2020 indudes expected proceeds from disposal of the plant. The cash flow projections also ignore the effects of general upward movement in prices. It is estimated that if the plant is sold in Januauy 2017, it would realize nxet proceeds of GHC1,320,000. The cost of capital for GTL is 15% (ignoring inflationxuy effect). Required: Explain how GTL should account for this transactions it her financial statement in accordance with IAS 36 Impairment of Assets