Dear XXXX, I am writing to seek advice from you with regards to numerous accounting issues. As you know most of our directors have limited accounting knowledge and they are bit confused with the accounting treatment for several items that has been proposed by ourjunior accountant. Our senior accountant is on sick leave, and we are unsure when she will be back. The directors want to make sure that the proposal by the junior accountant is in line with the requirements of the Australian Accounting Standards. They would also like to understand the reasoning behind the appropriate accounting treatments. The items of concern are included below: 1. The directors are confident that a new toy in the making, Sothies, will be a best seller. During the year ended 30 June 2022, we have incurred $32,000 to identify alternative materials that can be used to manufacture this product. The initial material identified has proven difficult to obtain. Our junior accountant insists that these amounts should be recognised as an expense, but the directors are adamant that the $32,000 should be included as an asset in the balance sheet as it has the potential to produce economic benefits