ABC Corporation acquired a 30% equity stake in XYZ Ltd. for $3 million three years ago. The investment was classified as an equity investment, and ABC uses the equity method to account for this investment. At the end of the second year, ABC received $500,000 in dividends from XYZ Ltd. This year, due to significant losses incurred by XYZ Ltd., the fair value of the investment has decreased to $1.5 million.

According to the IFRS framework, ABC Corporation needs to assess whether the investment in XYZ Ltd. is impaired. What is the appropriate action ABC should take regarding its investment in XYZ Ltd.?