1. Do you think that the expensing of R&D expenditure causes any damage to the company? Support your answer with relevant financial/non-financial figures. And How does the company attempt to overcome any potential damage created by the NZ IAS 38 requirement to expense research expenditure immediately?  please use the company's figures to support the answer.
     
    

just talk in general about expense and what to do to minimum the damage
How to overcome r&d expensed damage
What info do u need? 

7(a). Net operating profit $NZ000's Note 2019 2018 (Loss) before tax (2,259) (12,666) After charging the following specific expenses: Finished goods material component of cost of goods sold 43,272 45,404 Inventory write off 1,125 476 Audit fees and review of financial statements 7(b) 156 193 Rental expense - premises 580 528 Operating leases motor vehicles and equipment 463 450 Share options expense 252 135 Short-term employee emoluments: Selling and distribution expenses 7,184 6,683 General and administrative expenses 1,929 1,899 Research and development expenses 1,540 1,282 10,653 9,864 Research and development expenses: Product development 914 6,521 New market development 1,674 1,709 2,588 8,230 Depreciation: Plant and machinery 82 88 Furniture and fixtures 25 27 Vehicles 8 11 115 126 Amortisation (included in General and Administration expenses): Patents 128 115 Software 54 99 Development costs 22 204 214 Finance costs: Interest 5,394 3,496 Foreign exchange losses/(gains) Derivative losses/(gains) Other financing costs/(gains) 2,624 (438) 417 (380) (18) (26) 8,417 2,652