Answer: 2

## Explanation **Step 1: Understand impairment testing** Under IFRS (IAS 36), an asset is impaired when its carrying amount exceeds its recoverable amount. The recoverable amount is the higher of: 1. Fair value less costs to sell (FVLCTS) 2. Value in use (present value of expected future cash flows) **Step 2: Calculate fair value less costs to sell (FVLCTS)** - Fair value = €48,000 - Costs to sell = €3,000 - FVLCTS = €48,000 - €3,000 = €45,000 **Step 3: Determine recoverable amount** - Value in use (present value of expected future cash flows) = €46,000 - FVLCTS = €45,000 - Recoverable amount = Higher of €46,000 and €45,000 = €46,000 **Step 4: Calculate impairment loss** - Carrying amount prior to impairment = €50,000 - Recoverable amount = €46,000 - Impairment loss = €50,000 - €46,000 = €4,000 **Step 5: Verify the options** The calculation shows €4,000 impairment loss, which corresponds to option B (4). **Note:** The question shows option A as "A.2", option B as "B.4.", and option C as "C.5". The correct answer is B (4).

Author: LeetQuiz .