Question 4 Briefly outline how the following items should be classified in general purpose financial reports. Use the definition and recognition criteria from the conceptual framework to support your answers. a) Frangipani Ltd manufactures ice cream. Last year it spent $20,000 on market surveys to determine what new flavours customers might purchase. Based on the survey findings, it then spent a further $10,000 to manufacture and test a batch of mango ice cream (this included laboratory testing and customer tasting) before launching the product in the market [7 marks]. b) Hibiscus Ltd sells electrical goods. Based on sales in 2015, it expects to spend $15,000 repairing and replacing faulty items under warranty over the next 3 years. In addition, a customer is suing Hibiscus Ltd for $5,000 for electrocution by a faulty electric jug. Evidence indicates the company was not at fault (8 marks)