 Let us see a practical question. There is an asset having carrying value historically depreciated of 290,000. Any cost minus the accumulated depreciation is 290,000 and net selling price is 120. The anticipated cash inflow for the machine are now 100,000 per annum for the next 3 years. The market discount rate is 10% and the present value factor of 10% for 3 years is 2.487. Now the net selling price is 120 and value in use is 100,000 by the factors that comes to 287,000 to 48,700. Now see compare here 120 and 247. So it means we have to take value in use to compare with the carrying value. Now the use value is greater than the net selling price. So this becomes the recoverable amount. Now the higher of the two, the higher of net selling price and the value in use should be compared with the carrying value. Now let us see impairment test. Carrying value is 290 and the recoverable amount 287 to 48,700 and impairment loss is 43,300. This is likely an additional depreciation. The carrying value need to be reduced by 29 to 248,700. As a debit to the income statement that is the profit and loss account and credited to the machinery account. Now important thing here is that how we can select the discount rate and how we work out the cash flows in the remaining life. So this is an important issue because question is how many years to go means if remaining life is 3 years so we look into first year what will be the inflow second year and third year and we should consider all the factors which we cover in the cash flow statement that how much cash flow is going to cover. So once you know that and similarly discount rate not flat 10% all the time it depends what type of asset it is and what is going to be if we borrow that assets what interest we pay on that borrowing. So that discount rate should be used and we have to be very careful about it. That discount rate in fact for the examination purpose these figures are given. Now cash flow is not even all the year like I said in the example it can be different year by year so we should look into how to discount them to find out the value in use. Thank you very much.