Pyramids Corporation, a film production and musicals company which are engaging in shooting cinema films and selling it to various distributors all over the world. During the year 2019, the following expenses were incurred by the company such as: Implementation of an advertisement campaign for the value of OMR 24,000, Cost of testing of preproduction prototype was OMR 17,500, an expense on internal generation of brand was OMR 12,200 and search for alternatives for a production process cost was OMR 22,000 as a part of the companys research and development process.

Pyramids Corporation incurred the following expenses at the time of establishment: OMR 4,500 for pre- opening cost of business facility, OMR 24,500 for models, designs and prototype, OMR 2,500 for training, customers loyalty and market share, OMR 7,200 for the design of a pilot plan and OMR 17,500 for royalty and standstill agreements.

Pyramids Corporation which produces musicals discovers an exceptionally talented promising singer. The company engages her for six years and gives her lessons in singing and acting, free of charge.

Required:

a) On the role of a financial expert, analyze the above expenses and whether these expenses need to be capitalized or not? What will be the accounting treatment as per IAS 38?

b) Assess the treatment of singer and what will be impacts by taking into consideration of research

development costs according to IAS 38.