Select the most correct answer:

A vehicle, which is classified as property plant and equipment (IAS 16) and measured using the cost model, is to be transferred to the held for sale classification.

It has a cost of R220 000 and its accumulated depreciation to date of transfer is R44 000. This asset has never before been impaired. On date of transfer: its fair value is R154 000 with estimated costs to sell of R11 000, and its value in use is R198 000.

The impairment consequences are as follows:

a. The asset is impaired in terms of IAS 36 Impairment of assets but is not impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations.

b. The asset is not impaired in terms of IAS 36 Impairment of assets but is impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations.

c. The asset is impaired in terms of both IAS 36 Impairment of assets and IFRS 5 Non-current assets held for sale and discontinued operations.

d. The asset is not impaired in terms of either IAS 36 Impairment of assets or IFRS 5 Non- current assets held for sale and discontinued operations.

e. None of the above are correct.