Dory Limited is a company involved in the hair industry supplying products to some of the most expensive hair salons around the world. In a bid to expand its market, it acquired a well-known brand, Streak, on 1 January 2018, for an amount of R2 500 000. The salons will now have the exclusive rights to market this product to its customers. This purchase price was paid in full on 1 January 2018. The Dory Limited hair stylists had to be sent on extensive training before they could use and sell the Streak range of hair products. The training took place in Italy during January 2018. The training manuals cost R80 000 and the accommodation and transport cost R120 000. Further to this, an amount of R175 000 was spent on legal fees regarding the drafting of the sales agreement and to register the transfer of ownership. The legal fees were paid on 1 January 2018. The use and sale of the Streak range began on 15 February 2018. The Streak brand has an estimated useful life of ten years.

Required IAS 38 Intangible Assets, defines an intangible asset as an identifiable non-monetary asset without physical substance.

With reference to IAS 38, explain: a) Whether the Streak brand can be recognised as an intangible asset; and (15)

b) How to measure the Streak brand in Dory Limiteds financial statements for the year ended 31 March 2018. (15)