If the carrying amount or expected ultimate cost of a qualifying asset, including capitalized interest cost, exceeds its recoverable amount, the carrying amount is written down.

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This is in accordance with accounting principles, where if the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized to write down the asset to its recoverable amount, ensuring that the asset is not stated at more than its recoverable value.

If the Carrying Amount or Expected Ultimate Cost of a Qualifying