In January 2020 a company's R&D department started a project with the purpose of working out a better material for their products, which would give them a competitive advantage. Until 1 August 2020 they were developing and testing alternative materials. The total costs related to the project so far had been 200,000. On the 1 August 2020 a choice was made and one of the materials was selected. At that moment it became clear that the material met the required quality and the management made the decision to use the selected material for making products that would be in high demand. Before using the material for commercial production some final development on the material had to be carried out and some sample products made. The average monthly expenditures were 20,000 in August, September, October and November and decreased by 10,000 per month in December 2020 and January 2021. This development was completed by the end of January 2021, after which the company started using the material in the production of goods that will be sold to customers. How will the expenditures on the project be reported in the financial statements to the year ended on 31 December 2020? O 290,000 capitalised as an intangible asset in the statement of financial position. 200,000 as an expense in the statement of profit or loss and 90,000 capitalised as an intangible assets in the statement of financial position. 290,000 as an expense in the statement of profit or loss. O 90,000 as an expense in the statement of profit or loss and 200,000 capitalised as an intangible assets in the statement of financial position.