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).