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Question 2 A&G Berhad is a motorcycles manufacturer. From 1 April 2019, the directors have decided to reclassify research and amortised development costs as administrative

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Question 2 A&G Berhad is a motorcycles manufacturer. From 1 April 2019, the directors have decided to reclassify research and amortised development costs as administrative expenses rather than its previous classification as cost of sales. They believe that the previous treatment unfairly distorted the company's gross profit margin. Required:- As the auditor of the company, advise the directors on the decision. [8 marks

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