properly adjusted. The long$-$range radar project is intended to adapt existing military radar technology for civilian air traffic control purposes. The company has built a successful prototype and has had strong expressions of interest from a number of potential customers. It is almost certain that the company will start to sell this product early in the year $20Y0$ and that it will make a profit.

The wide$-$angle microwave project is an attempt to apply some theoretical concepts to create a new radar system for use in military aircraft. Initial experiments have been promising, but there is little immediate prospect of a saleable product because the transmitter is far too large and heavy to install in an aeroplane.

$($iv$)$ During the year the company spent $$1,000,000$ in order to exhibit its product range at a major trade fair. This was the first time that $T$ had attended such an event. No orders have been received as a direct result of this fair, although the sales director has argued that contacts were made which will generate sales over the next few years.

$($v$)$ T has made losses for tax purposes for several years. It does not expect any tax charge for the year ended $31$ December $20$X$8.$

$($vi$)$ The directors do not plan to propose any dividends for the year ended $31$ December $20$X$8.$

Required:

Prepare T$\text{'}$s statement of profit or loss for the year ended $31$ December $20$X$8$ and its statement of financial position at that date. These should be in a form suitable for publication and should be accompanied by notes as far as you are able to prepare these from the information provided. There is no need to prepare a statement of accounting policies, a statement of changes in equity or a calculation of earnings per share.

$[$Total: $25$ marks$]$