Question $2$

Imperium Berhad is 'knowledge$-$led' and its management has initiated a strategy of investment

in areas such as brands, advertising, media, technology, and employee training. The business

has few items of property, plant and equipment and the management are concerned that last

year's statement of financial position did not reflect the value of these intangible assets. The

following events have occurred during the year ended $31$ December $2022.$

$($a$)$ On $1$ January $2022$ the company acquired a cable television franchise for RM$20$ million.

The franchise allows Imperium Berhad the exclusive right to provide cable television to

two million viewers in the Northern region of Malaysia for the next $10$ years.

A $10-$year franchise covering a similar number of viewers in Selangor was sold by a

competitor to a third party on $31$ December $2022$ for RM$30$ million. A franchise

consultant has provided the management with an independent report that supports an

equivalent market value for the Northern region of Malaysia franchise. The company has

measured the franchise rights in its statement of financial position at the valuation of

RM$30$ million.

$($b$)$ The company is developing software for use in streaming programmes via smart phone

hardware. It is unique software, as it allows users to interact as well as watch those

programmes provided by Imperium's broadcasting network. In previous years, RM$2$

million incurred on the project had been recognised as an expense in profit or loss as

research costs. On $1$ July $2022$ the company was able to demonstrate that the process met

the IAS $38/$MFRS $138$ criteria for recognition as an intangible asset. At $31$ December

$2022$ the company has recognised the intangible asset at a cost of RM$9$ million,

comprising the expenses included in the 'Research and development costs' table below.

Research and development costs

$($c$)$ On $1$ January $2022$ Imperium Berhad acquired a publishing title for RM$50$ million. The

title complemented the company's existing porffolio of four similar publishing titles.

During $2022$ RM$20$ million of expenditure was incurred on marketing and promotional

activities, which management hope has enhanced the value of the publishing portfolio,

and RM$4$ million has been added to the carrying amount of the acquired publishing title.

The long$-$term strategic plans for the business show that Imperium Berhad will invest

significantly in the future development of the titles. Management believe this will

enhance the value of the titles and that the titles have an indefinite life.

Required:

Explain the required accounting treatment of the above issues, preparing calculations where

appropriate and setting out the presentation requirements: