d) Filton plc operates in the aviation industry and has two separate projects undertaken during the year ended 31 March 2021: i. Project A is a development project related to a new aircraft that will allow the aircraft to carry more passengers on board. The board of directors is confident that future sales of Project A will greatly exceed its development costs. The development work took two years and was completed on 31 March 2021. During the year ended 31 March 2020, Filton plc capitalised development expenditure of 5,554,500 in compliance with IAS 38. Filton plc incurred a development expenditure of 825,500 for this project for the year ended 31 March 2021. Filton plc tested and confirmed its estimates at the end of the development phase. The new aircraft will be in operation from 1 April 2021 with a useful life of 15 years. ii. Project B is about a research project being conducted by Filton plc is to develop a small plane without a human pilot aboard (the drone). Filton plc spent 225,000 on the early stages of developing the drone during the year ended 31 March 2021. The management team expects that it will take additional three years to complete the project and is trying to find enough finances to complete the project. Required: Discuss and show how Filton plc should treat the above two projects in its financial statements on 31 March 2021 in accordance with IAS 38 Intangible Assets.

d) Filton plc operates in the aviation industry and has two separate projects undertaken during the year ended 31 March 2021: i. Project A is a development project related to a new aircraft that will allow the aircraft to carry more passengers on board. The board of directors is confident that future sales of Project A will greatly exceed its development costs. The development work took two years and was completed on 31 March 2021. During the year ended 31 March 2020, Filton plc capitalised development expenditure of 5,554,500 in compliance with IAS 38. Filton plc incurred a development expenditure of 825,500 for this project for the year ended 31 March 2021. Filton plc tested and confirmed its estimates at the end of the development phase. The new aircraft will be in operation from 1 April 2021 with a useful life of 15 years. ii. Project Bis about a research project being conducted by Filton plc is to develop a small plane without a human pilot aboard ("the drone). Filton plc spent 225,000 on the early stages of developing the drone during the year ended 31 March 202 The management team expects that it will take additional three years to complete the project and is trying to find enough finances to complete the project. Required: Discuss and show how Filton plc should treat the above two projects in its financial statements on 31 March 2021 in accordance with IAS 38 Intangible Assets