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Help me please now now QUESTION 4 (25 marks) John Limited is a diversified company involved in a wide range of activities in the food

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Help me please now now QUESTION 4 (25 marks) John Limited is a diversified company involved in a wide range of activities in the food and beverage industry The following independent transactions relate to the company's activities both during the current year and during prior years listed below.) (a) The company purchased a brand on 2 January 2017 for N$ 2 000 000. At aquation date, the estimated useful life of the brand was twenty years, and this has remained unchanged. There is no commitment from a third party to acquire the brand at the end of its useful life. On 31 December 2020, the directors believe that the brand is now worth NS 5 000 000 (5 marks) (b) In the past, the company began a research and development programme (known as the super project) for a vacuum sealed in that extends the shelf life of tinned food. During the current year. N$ 300 000 was incurred on research costs from 1 January 2020 to 31 March 2020 On 1 April 2020, the Research and Development director announced that all the development phase criteria were met. A further N$ 1 500 000 was incurred on development costs from 1 April 2020 to 31 December 20X3. At this stage, the directors believe that the super tin project will have an indefinite useful life. The recoverable amount of the super tin project on 31 December is estimated at N$ 2 000 000 (5 marks) (c) A large advertising promotion was carried out during the second half of the 20x3 year at a cost of N$ 220 000. The cost relates to the creation of advertising brochures and the recording of a radio advert. The directors believe that the main benefits of this programme will occur during the 2021 year. In addition, an amount of N$ 25 000 was paid in advance to NBC to air the adverts during 2021. (5 marks) The accounting policy of Snake Limited is to measure Intangible assets using the cost model, except for intangible assets for which there is an active market which are measured using revaluation model REQUIRED. Explain. giving reasons, how each of the above transactions should be dealt with in the financial statements of Snake Limited for the year ended December 2020, in accordance with the requirements of IAS 38 Intangible assets. (15 marks) QUESTIONS

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