KREMLILIAI sudtennent. 2. Rarala Bhd. has a broadcasting license which is renewable every 10 years. The renewal of the license can be done indefinitely at little cost. The license was acquired 12 years ago at a cost of RM2.5 million and no amortization is recognized for the license. On 1 March 2015, Rarala Bhd. has to sell the broadcasting license to Smerce Bhd. for RM2 million. Smerce Bhd. intends to renew the license indefinitely as the evidence supports its ability to do so and the license is expected to contribute to the entity's net cash flows indefinitely. Required: Assuming that the financial year-end of both companies is 31 December, discuss the accounting treatment related to the broadcasting license for Rarala Bhd. and Smerce Bhd. for the financial year 2015