1. Entities spend millions of dollars on marketing and advertising intended to promote and build brands, develop customers and sell services or products. Consider a new hotel being launched. Extensive marketing spending is required to create an awareness of the hotel and attract the first visitors. REQUIRED: With reference to the Conceptual Framework, discuss whether the marketing costs incurred by the hotel can be capitalised as an asset and recognised on the balance sheet. (7 marks) 2. In its recent financial report, Telstra Ltd recorded its telecommunication equipment at $98,435,200. However, it disclosed in the notes to the financial report that the market value of its equipment was estimated at $167,026,800. The market value was based on independent valuations. REQUIRED: As a user of financial statement, which figure is more useful to you for decision- making? Explain why. (7 marks)