he following issues remain outstanding in the preparation of the financial statements for Martin plc for the year ended 31 December 2020:

i).

On 1 July 2020, Martin plc received a government grant of £120,000 to employ 10 young people on apprenticeship schemes lasting three years.

Conditions attached to the grant specified that Martin plc must employ at least 10 apprentices under the scheme, or all of the grant would become repayable. The 10 apprentices had been taken on by Martin plc by 1 July 2020 on 3 year apprenticeship contracts.

The financial controller for Martin plc credited the full £120,000 to other income.

ii).

During the financial year ended 31 December 2020, Martin plc incurred £188,000 of research and development expenditure related to a new product.

On 30 May 2020, Martin plc determined that the development of the new product was commercially viable and technically feasible. £43,000 of the total costs were incurred before this date.

The remaining costs were incurred in the period up to 1 October 2020, when the product was launched, and included £15,000 spent on product launch advertising. The new product has an estimated useful life of ten years with a nil residual value.

Required

Explain the required IFRS accounting treatment of the issues above, preparing relevant calculations and discussing the impact, where appropriate, on the statement of profit or loss and statement of financial position for the year ended 31 December 2020.