( ifrs)

has a broadcasting license which is renewable every 10 years. The r of the license can be done indefinitely at litle cost. The license was acquired 12 year financial statement. larch 2015, Rarala Bhd. has to sell the broadcasting license to Smerce Bhd. for RM million. Smerce Bhd. intends to renew the license indefinitely as the evidence support its ability to do so and the license is expected to contribute to the entity's net cash flows indefinitely 2 Rarala Bhd. of RM2.5 million and no amortization is recognized for the license. O uming that the financial year end of both companies is 31 December, discuss the accounting treatment related to the broadcasting license for Rarala Bhd. and Sm Bhd. for the financial year 2015 Required Originate Bhd. is a manufacturer of a pharmaceutical product that has been operating for 10 years. The company is actively involved in research and development (R&D) activities and has the following R&D projects as at 31 January 2016 3 (a) Project A-a general survey into the long term effects of its diet pills 'Q-kuru involving users' resistance to allergies and infections. At the year-end, the research till at the basic stage. No worthwhile results with any particular applications hav been obtained for the project (b) Project B-an enhancement process involving an existine dr eable aditiol uses of the drug and is targ sting drug, 'Euphoria'. The and is targeted on 30 April 2016, with the g would greatly exceed the costs able additional uses of the drug enhancement is performed to en to boost sales. This project was completed successfully expectation that all future sales of the enhanced dru of the new development (c) Project C-a scien ific enquiry with the aim of identifying new strains antihistamines for future use. Several possible substa substances have been identified in t from the research is not sufficiently advanced to permit patents and copyrights to be obtained at the present tim Required Explain how each of the items would be treated in th Provide justifications for your answer accounts of Originate B Roiboss Bhd. acquired the trademark for a leading con has a remain Roiboss Bhd. intends to renew the trademark coThe ability to do so. An analysis of (al product li hd consumer product. ning legal life of five years, but is renewable ev Product 4 every 10