The following information is available for a company that prepares its financial statements in accordance with IFRS: -It has production facilities under an operating leasing contract signed 5 years ago, for a total net present value of future rents of $60 million. The Market value of those facilities at that time were $65 million. -For similar class of assets, the firm uses the straight line method of depreciation and estimates a useful life of 10 years. - Recently, several other companies have entered the market, and the company now estimates that it will be able to generate a cash flow of only $6 million per year for the next five years with its facilities. The firm has a cost of capital of 10% . The firm uses the cost model. In year 5, identify the following amounts, regarding the assets and liabilities involved in these events: a- Carrying amount (before impairment testing) b-recoverable amount c- impairment loss

d- analyze the impact in terms of financial analysis. Which areas of ratio analysis will be impacted and how?