Based on Malaysia Accounting Standard

JGO Bhd. is a public listed pharmaceutical manufacturer of vaccines, started to develop a vaccine for Covid-19, named CCV-19 which has never been sold before in the market. Its accounting policy to the research and development of the vaccine is to capitalize on expenditure as far as allowed by the accounting standard. The expenditures incurred to 30 April 2020 of the vaccine were as follows: i 1 May 2019 to 31 October 2019 JGO Bhd. commenced a research and development project of its new vaccine on 1 May 2019 to study the long term effect of the vaccine involving users' resistance to allergies and infections. On the same day, the vaccine production machine was purchased. On 31 October 2019, no worthwhile results with any particular applications have been obtained for the first phase. Details of expenditures incurred were as follows: RM Expenses Salaries paid to research team members Expenses on preparing technical feasibility Vaccine production machine with a useful life of 5 years Laboratory expenses Costs of materials used in the manufacturing process of the new ew vaccine 500,000 250,000 3,000,000 1.200,000 420.000 i. 1 November 2019 to 31 January 2020 JGO Bhd. has succeeded in developing the new vaccine on 1 November 2020 which will cure the Covid-19 more effectively than the other vaccine currently being marketed. The company was able to demonstrate that the production process met the criteria for recognition as an intangible asset on 31 January 2020. An enhancement process involving the vaccine was performed to enable additional uses of the vaccine and was targeted to boost sales. There is a definite demand for this vaccine and commercial production and sales would greatly exceed the costs of the new development. On 1 January 2020, JGO Bhd applied for a patent on the vaccine and incurred legal and administrative costs. The development costs are to be amortized over a 10-year useful life. Details of expenditures incurred were as follows: Expenses Salaries paid to research team members Design and construction of pre-prototype of the new vaccine Patents purchased with right of use for 5 years Market research to test for any evaluation of new vaccine Assessment of the commercial viability of the new vaccine Laboratory expenses RM 800,000 800,000 500,000 300,000 240,000 400,000 iii. 1 February 2020 to 30 April 2020 On 1 February 2020, JGO Bhd. launched the new vaccine, CCV-19 into the market. The feedback from the users was positive. On 1 April 2020, the company was also trying to develop a new vaccine, named CCV2 that will develop neutralizing antibodies to the virus at levels similar to people who had recovered from the infection. Although the company feels very confident about the development of this new vaccine, it has not yet succeeded in developing the right formula. Details of expenditures incurred were as follows: Expenses Product launching expenses for CCV-19 Quality control during commercial production of CCV-19 Salaries paid to research team members for the new vaccine, CCV2 Costs of materials used in the process of the new vaccine, CCV2 Laboratory expenses RM 1,200,000 200,000 1,000,000 200,000 600,000 Required: Discuss the accounting treatments of the internally generated intangible assets for each of the above phases under MFRS138 Intangible Assets