During the year to 31 July 2023, Bishop plc incurred research and development costs of £213,000. These costs comprise the following amounts:
(a) Research costs of £29,200.
(b) Costs of £67,900 incurred in developing new software that will allow the business to record its non-current assets and calculate their depreciation. Unfortunately, tests indicate that the software is currently unable to calculate depreciation correctly.
(c) £115,900 relating to the development of software that will significantly reduce the company's inventory costs. The software has been fully tested and will come into operation from 1 January 2024. It is expected to have a useful life of four years. Between January and May 2023, Bishop plc spent £1m on sending all staff on a specialist training course. This will bring improvements in the quality of work and should result in increased profits. Directors believe that these improvements will last for the next four years and would like to capitalise the training costs and amortise them over that period.

Required:
Explain how the research and development expenditure outlined above should be treated in the financial statements for the year to 31 July 2023. Also explain to the directors the correct accounting treatment of the staff training costs.