(a) The IASBs Framework for the Preparation and Presentation of Financial Statements requires financial statements to be prepared on the basis that they comply with certain accounting concepts, underlying assumptions and (qualitative) characteristics. Five of these are: Matching/accruals Substance over form Prudence Comparability Materiality Required Briefly explain the meaning of each of the above concepts/assumptions. (b) Product development costs are a material cost for many companies. They are either written off as an expense or capitalised as an asset. (IAS 38 Intangible Assets')