This course is corporate reporting.

(Urgent)

Question:

TQ

SABA Berhad is a manufacturing company that runs a number of operations including a packaging plant that packages masks. The company has been developing a new packaging process that will allow the masks to be filled and sealed more efficiently. The new process took a year to develop. At the start of the development the company estimated that new process would increase output by 15% with no additional cost. The company's expected profit margin is 20%. The sales of the company for the current year is budgeted as RM2,000,000 (excluding the new project). The company incurred costs of RM100,000 on the above development and plans to install the new process. Required Determine how the company should treat its development costs in its financial statements in accordance with MERS 138 "Intangible Assets