Husky Energy Inc. is one of Canada's largest integrated energy companies. It is headquartered in Calgary, Alberta, and its shares are traded on the Toronto Stock Exchange under the symbols HSE. Husky uses IFRS to prepare its Annual Report. Following is an excerpt from the December 31, 2011, Annual Report:

Impairment of inventory to net realizable value for the year ended December 31, 2011 was $3 million (2010 - $35 million) primarily caused by a reduction in the market prices for asphalt and ethanol products. During 2011, inventory impairment reversals amounted to nil (2010 - $4 million).
Required
1. What caused the impairment of inventory in fiscal 2011 and in fiscal 2010? How much was the impairment in each of those years?
2. If there is a shortage of asphalt and ethanol products during 2012 and market prices for these items double, can the value of remaining 2011 inventory be increased in 2012? If so, by how much? How does this IFRS treatment compare to ASPE in the same situation?

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Note 5 Inventories ($ millions) December 31, 2011 $1,476 176 December 31, 2010 January 1, 2010 $ 688 451 | Crude oil, natural gas, and sulphur $1,438 148 Refined petroleum products Trading inventories measured at fair value less costs to sell Materials, supplies and other 296 236 113 284 123 85 $2,059 $1,935 $1,520