Quartz Limited has acquired intangible assets for the first time in the current year to 31 December 20.8. It is considering the treatment of these acquired intangible assets and it has asked for your opinion on how the following matters should be treated in the financial statements for the year ended 31 December 20.8. Quartz Limiteds vaccine manufacturing facilities have recently received a favourable inspection by South African Government medical inspectors. As a result of this, the company has been granted an exclusive five-year licence to manufacture and distribute a new vaccine. Although the license had no direct cost to Quartz Limited the directors feel its granting is a reflection of the companys standing and have asked marketing specialists Leaderbrand Limited to value the licence. Accordingly, they have placed a valuation of R10 million on it. In the current accounting period, Quartz Limited have spent R3 million sending its staff on specialist courses. Whilst these courses have been expensive, they have led to a marked improvement in production quality and staff now need less supervision. This in turn has led to an increase in revenue and a reduction in costs incurred. The directors of Quartz Limited believe these benefits will continue for at least three years and wish to treat the training costs as an intangible asset. In November 20.8, Quartz Limited paid R5.5 million for a television advertising campaign for its products that will run for six months from December 20.8 to May 20.9. The directors believe that increased sales as a result of the publicity (evidenced in January 20.9) will continue for two years from the start of the advertising. Quartz Limited have also acquired and developed a number of trademarks and brands during 20.8. It is intended to incur expenditure each year to maintain the competitiveness of these brands. In addition, goodwill has arisen in a number of subsidiaries, acquired during the current year ended 31 December 20.8. Required:

1. Explain how the following items should be dealt with in the financial statements for the year ended 31 December 20.8. Vaccine licence, Staff training costs and advertising campaign

2. you are required to draft a suitable accounting policy for goodwill, and trademark and brands for Quartz limited for inclusion in 20.8 group annual statements.