DISCUSSION 2

The land and building are both examples of Property, Plant, and
Equipment. Under the IAS 16, land and building are considered to be
two separately identifiable assets, which are accounted for separately
regardless of whether they are acquired together. The cost of
property, plant, and equipment includes not only the purchase price of
the asset but also all the expenditures necessary to prepare the asset
for its intended use. Since the payment to tenants was incurred due to
the reason for using the property, therefore it is considered to be
capitalizable as PPE.

Because the value in use if higher than the fair value less cost to sell, it is the recoverable
amount. Because the carrying amount exceeds the recoverable amount by $9,566,457, this is
the impairment loss that must be recognized

IAS 36 Impairment of Assets seeks to ensure that an entity's assets

are not carried at more than their recoverable amount (i.e. the higher
of fair value less costs of disposal and value in use). With the
exception of goodwill and certain intangible assets for which an
annual impairment test is required, entities are required to conduct
impairment tests where there is an indication of impairment of an
asset, and the test may be conducted for a 'cash-generating unit'
where an asset does not generate cash inflows that are largely
independent of those from other assets.