QUESTION 4 ANSWER ALL PARTS OF THIS QUESTION a) The following is an extract from the balance sheet of NEP plc for the fiscal year ended 31 December 2020: (in thousands) Non-current assets Property, plant and equipment (PPE) Intangible assets Financial assets 748 299 371 Current assets Inventories Trade receivables Cash 160 95 202 Total assets 1,875 During the annual press conference, a journalist asks the CEO of NEP whether specific positions in the balance sheet changed materially in value compared to the previous fiscal year. The CEO responds with: "Across all asset categories, impairments amount to 155,000 in fiscal year 2020." REQUIRED: i) Explain which asset positions in the above extract are subject to impairment and which IFRS applies to each of these asset positions. ii) Put yourself in the shoes of the journalist. Does the CEO's statement answer the question? (10 marks) b) Among its items of property, plant and equipment (PPE), NEP plc has a machine. On 31 December 2021, there is an indication that the machine may be impaired. The chief accountant has collected the following information: On 31 December 2020, the carrying amount of the machine was 197,000. For fiscal year 2021, depreciation amounts to 43,000. The machine is measured according to the cost model. On 31 December 2021, the fair value of the machine is 140,000. 4 Please turn over