QUESTION

1. Discuss IAS 38 in regards to a company wishing to capitialise their research and development costs.

(10 marks)

2. Ratio analysis is used when reviewing the performance of an entity.

1. "Secondary ratios are used to explain movement of primary ratios".

Using your own figures, include an example of the use of a secondary

ratios, explaining the relationship to your chosen primary ratio

(7 marks)

2. Are there other issues that should be looked at when assessing an entity's performance?

(5 marks)