A You MUST answer the question in this section. The question is worth 30 marks. You are reminded to show all relevant workings in your answer booklet. Question 1 International Accounting Standards (IAS) 16 Plant, Property and Equipment (PPE) states if there has been a permanent reduction in the value of PPE, the carrying amount should be adjusted for the decrease in value to reflect the 'recoverable amount." The term "recoverable amount' is outlined in IAS 16 as 'the amount which the entity expects to recover from the future use of the asset, including its residual value of disposal." However, the standard provides little guidance on how to deal with: the identification of an impaired asset; how to measure the impairment value; and how to recognise an impairment loss. As a result of this, IAS 36 Impairment of Assets was issued to help address the deficiencies of IAS 16 associated with impairment. Required Explain the assumptions of International Accounting Standards (IAS) 36 Impairment of Assets and the circumstances within which an impairment loss, in relation to PPE, has occurred. (Maximum wordcount600 words) (Total marks for question 1: 30 marks) TOTAL MARKS FOR SECTION A: 30 MARKS 4