b$)$

$(8$ Marks$)$

English plc operates in the biomedical engineering sector. During the year

$4,560,000$ was incurs on research and development activities of two new

products, artificial eyes, and medicated stents.

The following expenses were incurred between $1$ January $2022$ to $30$ April

$2022$:

On $1$ May $2022$ artificial eyes project was considered to be economically

feasible. It was launched on $1$ June $2022$ and has been selling well.

Medicated stents project needs further development before it can be

reasonably expected to generate future economic benefits.

Required

With reference to IAS $38$ Intangible assets how the above expenditures be

treated?