Ship plc owns a company called Class Cars. Extracts from Ship plcs consolidated statement of financial position relating to Class Cars are:

	000
Goodwill	80,000
Franchise costs	50,000
Restored vehicles (at cost)	90,000
Plant	100,000
Other net assets	50,000
Total	370,000

The restored vehicles have an estimated realisable value of 115 million. The franchise agreement contains a sell back clause, which allows Class Cars to relinquish the franchise and gain a repayment of 30 million from the franchisor. An impairment review at 31 December 2019 has estimated that the value of Class Cars as a going concern is only 240 million.

Required:

Explain, with numerical illustrations where possible, how the information above would affect the preparation of Ship plcs consolidated financial statements to 31 December 2019.