QUESTION TWO [40] Zoliswe Evans is studying for his exams however is struggling with IAS 38. He is writing next week and trying to cram in the work however it does not seem to be working out. Please can you help him with this section by summarising and/or answering the following questions: 1. An intangible asset is an asset so does this mean if the definition of an asset is met, we then have an intangible asset? (6) 2. My mum who is an accountant insists that my dad's fishing license is an intangible asset. My dad and I think she is wrong as we touch the fishing licence so it cannot be intangible. (3) 3. I always thought research & development was one "term" however my study notes separate research and development into different activities. What is the difference between research and development? (6) 4. What is PIRATE and why is it important? (8) 5. I am really struggling with this question; please can you help me with the journal entries for each of the years listed below: (17) Cargee Limited started researching & developing a new fuel-efficient vehicle, one that works electronically. The following is a summary of the costs incurred to date. 2018 240 000 R & D Costs 2019 180 000 R & D Costs 2020 60 000 R & D Costs The following additional information was provided: The costs listed above were incurred evenly throughout the year Included in the costs incurred in 2018 are admin cost of R60 000 that are not considered to be directly attributable. The first 2 months of the year were dedicated to research. Development began from 1 March 2018 but all 6 recognition criteria for capitalization of development costs were only met on 1 April 2018. Included in the costs incurred in 2020 are admin costs of R20 000 that are considered to be directly attributable to the R&D process Included in the costs incurred in 2020 are training costs of R30 000 that are directly attributable to the R&D process, certain employees were trained on how to operate the asset. I need to show the journals related to the costs incurred for each of the years ending 31 December however I am totally confused - please help