The activity aims to assess the student's ability to Analyze the impact of musharaka and capital impairment Determine the distribution of profit and loss Problem solving 1. Impact of Capital Impairment An Islamic financial institution invested in a two years project valued at BD. 200.000 by providing 80% of the capital based on the Musharakah contract. At the end of the first year, the project value declined by 20% resulting in capital loss of BD.40,000. The impairment loss of the project investment incurred by IFI is Since the project remains viable, the loss is carried forward to the next period at net asset value of BD 80,000 . In subsequent period, performance is measured based on the outstanding capital. On the other hand, if the project is abandoned leading to the termination of the Musharakah contract, the IFI claims should be only 2. Critically analyze the rules of termination in the Musharakha contract