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Explain two ways how the requirements in IAS 138/AASB 138 may influence management R&D decisions, assuming management compensation is based on profits. For each issue,

Explain two ways how the requirements in IAS 138/AASB 138 may influence management R&D decisions, assuming management compensation is based on profits. For each issue, briefly discuss the potential short- and long-term implications for the business.

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