c. Assets are resources controlled by an entity from which future economic benefits are expected to flow in the entity. 1. The Dakota Corporation operates several factories that manufacture medical equipment. Near the end of the company. Near the end of the company's 2013 financial year, a change in business climate related to the competitors innovative products indicated to management that the $170 million book value (original cost $300 million less accumulated depreciation of $130 millions) of the assets of Dakota's factories (identified as cash generating unit) may not be recoverable. Management is able to identify cash flow from this factory and estimates that the present value of the future cash flows over the remaining useful life of the factory (discounted at 5% per annum) will be $150 million. The fair value of the factory's assets is estimated to be $136 million and directly attributable disposal costs are estimated to be $1 million. Required. i. Explain what is meant by impairment and explain when do you need to test for impairment? (6marks) ii. Explain what is meant by cash generating unit? Explain the indicators of impairment. (8 marks) iii. Calculate the impairment loss which will be reported in the income statement as a separate component of operating expenses. (5 marks)