Corvelle is testing the value in use of its distribution division at 31 December 20X1. In December 20X1, the board approved in principle a reduction in warehouse staff, but the detailed plan has not been finalised and nothing has been communicated to those affected; the announcement is planned for March 20X2. The legal department concludes that, under IAS 37, the entity is not committed at the year-end. Management nevertheless wants to include the expected salary savings, which would be enough to avoid an impairment loss. Write a judgement memo.