GreenMont Enterprises Ltd (GreenMont) is a farm management company operating in UK. In recent years, the business has invested heavily into research and development and diversified into a number of new areas. The following information is available in respect of the year ended 31 December 2020. (i) GreenMont purchased a suckler cow quota for 200 cows for 150 per cow on 1 January 2020. There is an active market for suckler cow quotas, which must be owned to enable an application for subsidy income to be made. On 31 December 2020, the market value of the quota was 200 per cow. (ii) On 1 April 2017, GreenMont acquired an operators licence for a fleet of 10 heavy goods vehicles to set up a haulage division. GreenMont had rented out several of its farm sheds to manufacturing companies and it had identified a further source of revenue by offering a haulage service to the tenants. The price paid for the licence which is for five years, was 3,500 per vehicle. In addition to the initial price, GreenMont spends 3,000 each year advertising the haulage division. GreenMont received the invoice for the year ended on 31 December 2020 from the advertising agency on 10 January 2021. (iii) On 1 July 2018, GreenMont purchased shooting rights for 25,000 which entitle the company to seven years shooting on a nearby estate. The managing director uses this primarily for corporate entertaining. The rights are non-transferable during the seven-year period and therefore there is no active market. (iv) On 1 January 2016, GreenMont began the development of a new type of organic crop spray for sale. In 2016 GreenMont gave a 15,000 grant to the faculty of agriculture of Newcastle University to support their research on sustainable crop. In 2017 GreenMont expended further 20,000 on the development of the crop spray, and at the time, the project was still at an early stage. In 2018 the commercial viability of the project was confirmed and it was decided that the final product would be produced for sale. Costs incurred in 2018 and 2019 were 25,000 and 30,000, respectively. The first sales started in January 2020 and it is estimated that the final product would have a sale life of four years. (v) On 1 October 2019 GreenMont acquired a trademark with a useful life of ten years from a competitor. At the end of 2020 after taking into account the trademarks amortization, GreenMont tested the trademark for impairment and estimated that it had a net selling price of 33,000. The accounting policy of the company in respect of intangible assets is: Intangible assets with an active market are revalued on an annual basis. Intangible assets are amortized on a straight-line basis over 20 years or their estimated useful lives, whichever is the lower, on a monthly basis, with a zero residual value. Page 3 of 7

Required: a) Explain how each of the items (i) to (v) should be dealt with in the accounts for GreenMont for the year ended on 31 December 2020 and show the accounting entries required.

b) Prepare a disclosure note in respect of intangible assets for inclusion in GreenMonts financial statement for the year ended 31 December 2020. The disclosure note should include a table of the following structure in which each column should correspond to a relevant intangible asset item based on your calculation and recognition of assets from part a.