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First Aid Beauty Ltd has spent $2 million this year on a project to develop a new range of Alcohol-free cosmetics. As yet it is

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First Aid Beauty Ltd has spent $2 million this year on a project to develop a new range of Alcohol-free cosmetics. As yet it is too early for the company's management to be able to predict whether this project will prove to be commercially successful. Explain whether First Aid Beauty Ltd should recognise this expenditure as an asset, justifying your answer by reference to the Framework asset definition and recognition criteria. [15 marks]

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