Example 2 Amortisation of development expenditure Improve has deferred development expenditure of $600,000 relating to the development of New Miracle Brand X. It is expected that the demand for the product will stay at a high level for the next three year sales of 400,000, 300,000 and 200,000 units respectively are expected over this period. Brand X sells for $10 s. Annual How should the development expenditure be amortised