 Let us see another example. The Expo Limited purchased a plant for 270,000 on 1 January 2018 and incurred 30,000 on installation. So the cost comes to be 300,000, 270,000 plus 30,000. Let's start commercial production on 1st April 2018, now after 3 months. The useful life of asset is 8 years, depreciation is charged on state line method. Here again sometime in exam the depreciation not on state line but may be reducing balance method. So we have to be very careful which method is being used by the company. Due to lack of demand the utilization of plant reduce significantly that is the factor which affects the impairment. An impairment test carried out on 31st December 2020, exactly after 2 year, 1 year and 9 months. Now here again how much depreciation we charge for 11 and 12, so it depend what is the company policy. If they charge on use basis then the first year they should charge only for 9 months and the second year they charge for 12 months but in this case we assume that they are following year end balance and the rate on that. The current selling price similar plant is 150,000 and cost to sell is 22,000. So if you want to sell it now so you can recover only 120 or 150,000 but to sell it you incur a cost of 22,000. The new cash flow in net cash flow in keeping use for the next 5 years because 3 years expired is 1st year is 50,000, 2nd year is 40,000, 3rd year is 30,000, 4th year is 2000 and 5th year is 1000 and I haven't mentioned here any residual value. If there is any residual value that should be added to year 5. Now let's find out the impairment loss. Discount rate again is 10% we used, cost 300,000 and depreciation for 3 years. So 3 years depreciation 8 years life divide by 8 and then multiply by 3 so it comes to 112,500. So carrying value is 187,500. So this is simple disposable value when you want to sell it you are getting 150 minus 22,000. So the balance is 128,000. Now we need to find out the use value also. So in this case the use value year 12345 and the numbers are there you multiply and you get the discounted values and the total present value of use is 12890. Now here we compare the highest sales value is highest than the use value. So we compare we compare look 187,500 and net disposable value 128. So loss is 59,500 and this loss to be reported in the income statement for the year 31st December 2020 it is just like additional depreciation. Now another important thing which you have to remind you that calculating these two values recoverable value that is important basically and then comparing the current carrying value in the balance sheet. The value in the balance sheet we call them some time book value. So we see the book value and then we compare the book value with a higher of the two. So if there is a deduction in the value that is impairment. Now another important thing the next year depreciation will be the life remaining five years three years have passed. So the next year depreciation will be the new value 128 divided by 525,600 and if you try to see what is the amount of depreciation now and what will be the amount of depreciation in last let me go back to this slide. Look here if you divide by 300,000 by 8 so the depreciation is how much just calculate it it's less it's greater than the value here 25,600 that is 33 something and here it is 25,600 so that is the impact in fact we our depreciation reduces when the assets carrying the recoverable value reduces and that is how they compensate. Thank you very much.