Swift Limited (Swift) is a customer fulfilment and distribution company that provides the logistics processes (such as order picking, processing, packaging and shipping) needed to get a product from a seller to its customer. On 1 July 2013, Swift purchased a new warehouse near the rail freight terminal in Brisbane. This location will help better service the northern parts of Australia by offering quick and easy rail distribution services. Relevant details of the warehouse are as follows: The purchase price was $8 million, paid on 1 July 2013. Swift uses the cost model in IAS 16 Property, Plant and Equipment. The warehouse is depreciated on a straight-line basis over 16 years. 30 June 2020 On 30 June 2020, the government proposed to relocate the rail freight terminal to a different part of Brisbane, where it could service the waterfront port more efficiently. The relocation would result in increased costs for Swift to travel from its current location to the new rail terminal. The following information relates to Swift's measurement of the warehouse's recoverable amount at 30 June 2020: Warehouse Carrying amount, after recording the journal entry for depreciation for the year 4,500,000 Recoverable amount 4,000,000 Swift recognised a $500,000 impairment loss. Following this impairment, the warehouse was assessed to have a remaining useful life of nine years. 30 June 2024 On 30 June 2024, the government decided to retain the existing rail freight terminal next to Swift's warehouse, rather than proceed with its relocation proposal. In addition, it approved a new, high-speed railway service that promises to link Brisbane to other major cities, reducing the commute time between them. Swift's warehouse is very well located to take advantage of the new, high-speed railway, which will allow Swift to better service its customers. Details of the warehouse at 30 June 2024 are: Warehouse Carrying amount, after recording the depreciation journal entry for the year 2,222,222 You are the financial accountant at Swift, and you report to Bhavin Kapoor, the financial controller. Following the government's decision to retain the existing rail freight terminal, you organise a meeting with Bhavin to discuss the measurement of the recoverable amount of Swift's warehouse. You would like to engage the external valuers who assisted Swift in valuing the warehouse previously in 2020. Bhavin explains that there are no indications that the value of the warehouse is impaired and, therefore, it is not necessary to measure the recoverable amount at 30 June 2024. Bhavin is a Chartered Accountant.