Lilac Ltd has reported several intangible assets in its draft balance sheet as at 30 June 2019. The details are as below.

Brand name: Over the last five years, Lilac Ltd has developed a very successful brand of cosmetics, called LME. Based on years of experience, the Managing Director strongly believes that the value of the LME brand name is $1,500,000 and has measured the asset accordingly in the financial statement.

Franchise: The skincare clinic franchise was acquired for $900,000 on 1 January 2019 and is expected to have a useful life of 6 years. This franchise is extremely popular and is in high demand. From several recent sales of equivalent franchises within the last week of June 2019, the current market price for such a franchise has risen to $1,200,000.

Broadcasting licence: Lilac Ltd has acquired a $3,000,000 broadcasting licence that expires in 5 years. The licence is renewable every 10 years at insignificant cost. In the past, the management has already renewed the licence twice. The management has the intention to renew this licence. The technology used in broadcasting is not expected to change in the foreseeable future.

Research and development: Lilac Ltd is undertaking a project to develop natural and organic perfume. During 2017/2018, research costs of $220,000 and development costs of $350,000 were incurred. During 2018/2019, Lilac Ltd spent $150,000 on the development. Only the development costs incurred on and after 1 July 2018 met the test for capitalisation as required in AASB 138. The estimated recoverable amount of this project for the year ended 30 June 2019 is $300,000. Profitable sales were expected for a total of 6 years commencing on 1 January 2019.

REQUIRED: For EACH intangible asset, specify and briefly justify the following accounting decisions:

how the intangible asset identified by Lilac Ltd should be initially recognised,

the appropriate subsequent measurement basis (i.e., measurement model) of the asset, and

whether the asset recognised is subject to amortization. If yes, what is the amortisation expense for the financial year ended 30 June 2019?

As part of this explanation, you must include a calculation of the carrying amount of each intangible asset at 30 June 2019 in accordance with AASB 138 Intangible Assets. No journal entry is required.