Goode Medical Laboratory Ltd, GMLL, a medical research entity, has discovered a cure for a previously incurable disease. GMLL is protecting the drug’s formula by keeping it secure in the company vault, rather than by patenting it. GMLL shortly plans to start discussions with vitally interested pharmaceutical companies about producing the drug for commercial sale. Being the first of its kind and, therefore, unique, GMLL has no idea as to the formula’s value. Costs incurred to date in developing the formula are impossible to identify, given that the cure was discovered as a by-product of another research project.

Required

(a) Outline how GMLL should account for the formula, justifying your answer by reference to relevant definitions and recognition criteria.