UNO Ltd acquired DUO Ltd on 25 June 2020. At the date of acquisition, DUO Ltd had a research and development project with a cost of $35,000. After the acquisition, UNO Ltd decides to continue the research and development project and incurs a cost of $20,000 for the project in the year ended 30 June 2021.

REQUIRED: 

Discuss how UNO Ltd should treat the cost of the research and development project at the acquisition date and after the acquisition date in accordance with AASB 138 Intangible Assets.