FACULTY OF COMMERCE, MANAGEMENT AND LAW Question 2 (25) IT Profs is a tech company situated in Okakarara. The company's normal business is the sale of tech equipment and computers. In the current financial period IT, Profs consulted with a newly graduated IT specialist who is very enthusiastic about programming and explores many fields within the IT industry about their website. On 01 November 2020, the IT specialist directed a project for IT Profs to develop a new website for the company, as they believe the old was out of date to the company's strategy. The specialist had to spend a total cost of money below to develop the website and have it running by 31 December 2021. Consulting fees Graphic designs Planning the website Update of software Upgrade of internet package from Telecom to Paratus Telecom Photography Test hacking of the website and cyber security verification Update of anti-virus Admin costs Training of staff to use the website Social media influencers advertisements 10 000 1 5000 4.000 150 000 6 000 3 000 15 000 10 000 5.000 5.000 1.500 On 01 February 2021, the IT Profs noticed an increase in sales from the time that the website was active (31 December) of 45% compared to the previous month. This was due to the new ability of online shopping on the website. 30% of the development costs can be attributed to the development of the online sales and the related processes and integration to the point of sales systems. The rest of the costs are attributed to the information on the website. On 01 May 2021, an employee downloaded a movie from movie pirate's website that requested for his IP address, email address and work address to be able to download the movie. Within 30 minutes, the company's server has been attacked and taken over by hackers. The hackers have corrupted the website with viruses. IT Prof requested the IT specialist to drive another clean-up project and the virus was cleared on the 31 may 2021. The website has been slow since, with significant incoming complaints from customers on orders not going through and online sales decreased by 40% since. REQUIRED a) Descriptively discuss the identification, recognition and measurement of the costs included in the table in respect of the development of the new website in terms of the requirements of IAS 38. (20) b) Discuss whether True/False: All intangible assets are required to be impaired on a yearly basis. (5)