av Bhd had the following projects. 5. HyBy Bhd had the Year x3 vied a project to identify the properties of the Neem intended to come out with so as RM500,000.urten of Properties of the Neem plant HyBy enerating projects, Cost incurred P Year x4 be made from the leaves and to develop a 'cure all' ointment and pimples, Cost incurred (Peteoren Year x5 By identified several products that could be made from the rk of the Neem plant. HyBy was keen to develop a 'cure all rcream that would cure all external injuries and pimples. Costine vas RM990,000.- Capitaliseo aus expensed HyBy decided to concentrate on the cream.maling niet and continued to develop a sweet-smelling cream that would be readily accepted by various consumers. The project was still in progress. Market research indicated that the cream was very expensive and the fragrance was not viewed favourably by the majority of those surveyed. Costs incurred was.lcloed RM300,000. Cena enot Year x6 ce was not pre research not developed yet will be written of ye Further work was done and now the cream was acceptable to consumers who were anxiously waiting for the launch of the product. Costs incurred was RM250,000. (development osts incurred 500 Year x7 capitaliseopment Factory building was completed at a cost of RM10 million and equipment amortized deprecher cavi costing RM2 million was acquired. Production started on 1 July x7. HyBy expected the useful life of the cream to be indefinite. There was an active anisce market for the intangible asset and there were active offers for the rights herfor RM600,000 Ude MFRS 11 6 deprecation based on a conanie life cao given) A building & earprent initi Not amordized because.. Suples 600-250 SO2 MFRS 138 - CHAPTER 39 Year x10 The cream, named Magic, entered the market and HyBy expected to be a market leader for the first two years and to enjoy economic benefits for another three vears. 350 revaluation reserve indstinite Required Discuss the accounting treatment. av Bhd had the following projects. 5. HyBy Bhd had the Year x3 vied a project to identify the properties of the Neem intended to come out with so as RM500,000.urten of Properties of the Neem plant HyBy enerating projects, Cost incurred P Year x4 be made from the leaves and to develop a 'cure all' ointment and pimples, Cost incurred (Peteoren Year x5 By identified several products that could be made from the rk of the Neem plant. HyBy was keen to develop a 'cure all rcream that would cure all external injuries and pimples. Costine vas RM990,000.- Capitaliseo aus expensed HyBy decided to concentrate on the cream.maling niet and continued to develop a sweet-smelling cream that would be readily accepted by various consumers. The project was still in progress. Market research indicated that the cream was very expensive and the fragrance was not viewed favourably by the majority of those surveyed. Costs incurred was.lcloed RM300,000. Cena enot Year x6 ce was not pre research not developed yet will be written of ye Further work was done and now the cream was acceptable to consumers who were anxiously waiting for the launch of the product. Costs incurred was RM250,000. (development osts incurred 500 Year x7 capitaliseopment Factory building was completed at a cost of RM10 million and equipment amortized deprecher cavi costing RM2 million was acquired. Production started on 1 July x7. HyBy expected the useful life of the cream to be indefinite. There was an active anisce market for the intangible asset and there were active offers for the rights herfor RM600,000 Ude MFRS 11 6 deprecation based on a conanie life cao given) A building & earprent initi Not amordized because.. Suples 600-250 SO2 MFRS 138 - CHAPTER 39 Year x10 The cream, named Magic, entered the market and HyBy expected to be a market leader for the first two years and to enjoy economic benefits for another three vears. 350 revaluation reserve indstinite Required Discuss the accounting treatment