2 (15 MARKS) a) Over the last 20 years many companies have spent a great deal of money internally developing new intangible assets such as software. The treatment for these assets is prescribed by MFRS 138 Intangible assets. Required: In accordance with MFRS 138, discuss whether internally-developed intangible assets should be recognised, and if so how they should be initially recorded and subsequently accounted for. (3 marks) b) Panadil is a publicly listed pharmaceutical company that supply drug over Malaysia hospitals. During the year to 31 December 2020 the following transactions incurred: a. RM6m was spent on developing a new obesity drug which received clinical approval on 1 July 2020 and is proving commercially successful. The patent was registered on 1 July 2020. It cost RM1.5m and remains in force for three years. b. A research project was set up on 1 October 2020 which is expected to result in a new cancer drug. RM200,000 was spent on computer equipment and RM400,000 on staff salaries. The equipment has an expected life of four years. c. On 1 September 2020, Panadil acquired an up-to-date list of GPs at a cost of RM500,000 and has been visiting them to explain the new obesity drug. The list is expected to generate sales throughout the life- cycle of the drug. Required: Show the journal entries relating to the above transaction, and prepare extracts from the statement of financial position of Panadil at 31 December 2020 and summarise the costs to be included in the statement of profit or loss account for that year